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Manitowoc (MTW) Wraps Up H&E Equipment's Crane Business Buyout
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The Manitowoc Company, Inc. (MTW - Free Report) recently completed the acquisition of the crane business of H&E Equipment Services, Inc. (HEES - Free Report) for $130 million. The buyout strengthens Manitowoc’s strategy to expand its aftermarket business within a significant geographic region. In fact, this will enhance the company’s ability to provide rentals, new sales, used sales, aftermarket parts, and service to a variety of end-market customers.
On Jul 19, Manitowoc entered into this agreement for the acquisition. H&E Equipment Services is one of the largest rental equipment companies in the United States. Its crane business will now become part of Manitowoc’s new wholly-owned subsidiary, MGX Equipment Services, LLC.
This deal magnifies the company’s focus on growing the less cyclical part of its business. Last month, Manitowoc acquired all the assets of Aspen Equipment Company 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. Aspen’s after-market business will supplement the crane business acquisition.
Manitowoc continues to evaluate more acquisition opportunities to boost product development programs across its all-terrain product lines. 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 69.2%, outperforming the industry’s growth of 9%.
Other top-ranked stocks in the Industrial Products sector include Alcoa Corporation (AA - Free Report) and Deere & Company (DE - Free Report) . While Alcoa sports a Zacks Rank #1, Deere carries a Zacks Rank of 2 (Buy) at present.
Alcoa has an estimated earnings growth rate of 573.2% for 2021. The company’s shares have rallied 121.2% so far this year.
Deere has a projected earnings growth rate of 117.5% for fiscal 2021. So far this year, the company’s shares have gained 32.2%.
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Manitowoc (MTW) Wraps Up H&E Equipment's Crane Business Buyout
The Manitowoc Company, Inc. (MTW - Free Report) recently completed the acquisition of the crane business of H&E Equipment Services, Inc. (HEES - Free Report) for $130 million. The buyout strengthens Manitowoc’s strategy to expand its aftermarket business within a significant geographic region. In fact, this will enhance the company’s ability to provide rentals, new sales, used sales, aftermarket parts, and service to a variety of end-market customers.
On Jul 19, Manitowoc entered into this agreement for the acquisition. H&E Equipment Services is one of the largest rental equipment companies in the United States. Its crane business will now become part of Manitowoc’s new wholly-owned subsidiary, MGX Equipment Services, LLC.
This deal magnifies the company’s focus on growing the less cyclical part of its business. Last month, Manitowoc acquired all the assets of Aspen Equipment Company 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. Aspen’s after-market business will supplement the crane business acquisition.
Manitowoc continues to evaluate more acquisition opportunities to boost product development programs across its all-terrain product lines. 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 69.2%, outperforming the industry’s growth of 9%.
Zacks Rank and Other Stocks to Consider
Manitowoc currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked stocks in the Industrial Products sector include Alcoa Corporation (AA - Free Report) and Deere & Company (DE - Free Report) . While Alcoa sports a Zacks Rank #1, Deere carries a Zacks Rank of 2 (Buy) at present.
Alcoa has an estimated earnings growth rate of 573.2% for 2021. The company’s shares have rallied 121.2% so far this year.
Deere has a projected earnings growth rate of 117.5% for fiscal 2021. So far this year, the company’s shares have gained 32.2%.