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Manitowoc (MTW) Wraps Up Aspen Acquisition for $51 Million

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The Manitowoc Company, Inc. (MTW - Free Report) recently acquired all the assets of Aspen Equipment Company ("Aspen") for $51 million. This buyout will enhance Manitowoc’s footprint in Nebraska, Iowa and Minnesota, and provide after sales services to a diversified end market.

The company had entered into this agreement on Aug 17. Aspen is a diversified crane dealer and a leading final-stage, purpose-built work truck upfitter, serving various end customers. Aspen’s specialized crane and truck equipment upfitting capabilities provide a broader array of product offerings to an extensive range of customers including Manitowoc.

Synergies from the acquisition are likely to accelerate Manitowoc’s growth in the coming years. In fact, Aspen’s upfitting business complements the company’s National Crane boom truck business, which will allow it to better serve utility and telecommunications end markets customers. Apart from this, Aspen’s aftermarket business will supplement Manitowoc’s previously announced buyout of the crane business of H&E Equipment Services, Inc. (HEES - Free Report) . In July, the company entered into this agreement to expand its aftermarket business. The purchase of H&E’s crane business is a step toward growing the lesser cyclical part of the company’s business. This transaction is expected to close in the fourth quarter of the current year.

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 drive substantial long-term growth.

Manitowoc expects its current-year revenues between $1.775 billion and $1.825 billion. The mid-point of the range reflects year-over-year growth of 25%.

Share Price Performance

So far this year, Manitowoc’s shares have gained 73.4% outperforming the industry’s growth of 17.9%.

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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 - Free Report) and Terex Corporation (TEX - Free Report) . Both the stocks 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%.

Terex has an estimated earnings growth rate of 2,207.6% for 2021. The company’s shares have appreciated 47.4% so far this year.