The Manitowoc Company ( MTW Quick Quote MTW - Free Report) recently entered into an agreement to acquire all of the assets of Aspen Equipment, Co. (Aspen) for roughly $51 million. This deal will expand Manitowoc’s direct-to-customer footprint in Nebraska, Iowa and Minnesota, while providing new sales, used sales, parts, service, and rentals services to a diversified end market. Aspen is a diversified crane dealer and a leading final-stage, purpose-built work truck upfitter, serving various end customers. Manitowoc customers will benefit from Aspen’s specialized crane and truck equipment upfitting capabilities, which provide larger depth of product offerings. In fact, Aspen’s upfitting abilities will strengthen Manitowoc’s National Crane boom truck product offering. The deal, likely to close this September, will be accretive to adjusted EBITDA in the first year. The latest agreement complements its pending buyout of the crane business of H&E Equipment Services, Inc. ( HEES Quick Quote HEES - Free Report) . Recently, the company entered into this agreement in a bid to expand its aftermarket business. H&E’s crane business operates with 11 full-service branch locations. The purchase of H&E’s crane business is the next step in its journey to grow the lesser cyclical part of its business. Manitowoc continues to evaluate acquisition opportunities to boost product development programs in its all-terrain product line. It is scaling up its Chinese tower crane business and has launched four crane models, which have received positive customer feedback. The tower crane market in China is the largest tower crane market in the world. The company plans to spend $15 million this year to expand its tower crane rental fleet in Europe. In all-terrain cranes, the company has new models lined up for launch at Bauma, the world's leading construction machinery trade fair in 2022. These strategic initiatives, along with the company’s acquisition spree, will help drive substantial long-term growth. Recently, the company reported second-quarter 2021 results, wherein both earnings and sales beat the Zacks Consensus Estimates and increased year over year. Given the positive trends in crane demand, Manitowoc projects revenues in the range of $1.775 to $1.825 billion for 2021. The mid-point of the range indicates year-over-year growth of 25%. Share Price Performance
Over the past year, Manitowoc’s shares have gained 158.9% compared with the
industry’s rally of 62.4%. Image Source: Zacks Investment Research Zacks Rank and Other Stocks to Consider
Manitowoc currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Some other top-ranked stocks in the Industrial Products sector include Encore Wire Corporation ( WIRE Quick Quote WIRE - Free Report) and Lindsay Corporation ( LNN Quick Quote LNN - Free Report) . Both companies sport a Zacks Rank #1, at present. Encore Wire has a projected earnings growth rate of 332.6% for fiscal 2021. So far this year, the company’s shares have gained 45%. Lindsay has an estimated earnings growth rate of 17.3% for 2021. The company’s shares have risen 35% so far this year.