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TriMas Corporation (TRS - Free Report) entered into an agreement to acquire two family-owned private companies— Omega Plastics and TFI Aerospace. Omega will be a part of TriMas’ Packaging segment and TFI will be added to the Aerospace segment.
Based in Clinton, Michigan, Omega manufactures custom components and devices for diagnostic, drug delivery and orthopedic medical applications as well as industrial applications components.
Omega’s innovative tool-making capabilities, ISO13485-certified injection molding facility and ISO Class 8 clean room offers customers a quick product-development cycle starting from prototype development, testing and validation, to short- and medium-run production and assembling. These features make Omega a perfect fit for the TriMas Packaging business’s speed-to-market advantage on innovation and new product designs. In fact, the buyout boosts TriMas’ Pharmaceutical & Nutraceutical product offerings for additional medical applications. Omega is expected to generate revenues of nearly $18 million in fiscal 2021.
Based in Toronto, Canada, TFI manufactures and supplies specialty fasteners for a wide range of applications, primarily in the aerospace end market. The company is estimated to generate revenues of around $6 million in fiscal 2021. This buyout will expand the Aerospace segment’s fastener product lines. Along with this, TFI’s new project wins and the recovery in the aerospace market provides significant growth scope for the company’s complementary niche products.
Following the buyout, TriMas expects its net leverage ratio to remain below 2.0x, which will provide it ample capacity to execute on bolt-on acquisitions while returning capital to shareholders. It expects to close Omega and TFI deal by the end of this year.
TriMas’ strategy is to accelerate growth through acquisitions, particularly in the Packaging and Aerospace platforms, backed by their growth prospects. In line with this, TriMas completed three acquisitions in 2020 — RSA Engineered Products, Affaba & Ferrari and Rapak. The company is likely to benefit from these acquisitions in the coming years, recording top-line growth. TriMas has a robust pipeline of potential M&A in the Packaging and Aerospace segments.
TriMas expects year-over-year sales growth of 10-13% in 2021, driven by acquisitions, pick up in industrial demand and a benefit of its diversified end markets. The company anticipates adjusted earnings per share between $2.18 and $2.27. The mid-point of the range indicates year-over-year growth of 16%.
TriMas has a strong pipeline of both product and process innovation that will sustain long-term growth and position its businesses to capitalize on market opportunities as well as minimize market disruptions. The Packaging segment recently commercialized a single-polymer dispensing pump, which is ready for advanced design applications for customers serving the beauty, personal care and other end markets.
Price Performance
Shares of TriMas have gained 8.7% in the past year compared with the industry’s growth of 1%.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
In a year’s time, the company’s shares have increased 68%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 44% in a year’s time. The company has a trailing four-quarter earnings surprise of 16.8%, on average.
ScanSource has a projected earnings growth rate of around 19% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
The company’s shares have appreciated 23% in the past year. ScanSource has a trailing four-quarter earnings surprise of 34.6%, on average.
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TriMas (TRS) to Buy Omega & TFI, Expands Packaging & Aerospace
TriMas Corporation (TRS - Free Report) entered into an agreement to acquire two family-owned private companies— Omega Plastics and TFI Aerospace. Omega will be a part of TriMas’ Packaging segment and TFI will be added to the Aerospace segment.
Based in Clinton, Michigan, Omega manufactures custom components and devices for diagnostic, drug delivery and orthopedic medical applications as well as industrial applications components.
Omega’s innovative tool-making capabilities, ISO13485-certified injection molding facility and ISO Class 8 clean room offers customers a quick product-development cycle starting from prototype development, testing and validation, to short- and medium-run production and assembling. These features make Omega a perfect fit for the TriMas Packaging business’s speed-to-market advantage on innovation and new product designs. In fact, the buyout boosts TriMas’ Pharmaceutical & Nutraceutical product offerings for additional medical applications. Omega is expected to generate revenues of nearly $18 million in fiscal 2021.
Based in Toronto, Canada, TFI manufactures and supplies specialty fasteners for a wide range of applications, primarily in the aerospace end market. The company is estimated to generate revenues of around $6 million in fiscal 2021. This buyout will expand the Aerospace segment’s fastener product lines. Along with this, TFI’s new project wins and the recovery in the aerospace market provides significant growth scope for the company’s complementary niche products.
Following the buyout, TriMas expects its net leverage ratio to remain below 2.0x, which will provide it ample capacity to execute on bolt-on acquisitions while returning capital to shareholders. It expects to close Omega and TFI deal by the end of this year.
TriMas’ strategy is to accelerate growth through acquisitions, particularly in the Packaging and Aerospace platforms, backed by their growth prospects. In line with this, TriMas completed three acquisitions in 2020 — RSA Engineered Products, Affaba & Ferrari and Rapak. The company is likely to benefit from these acquisitions in the coming years, recording top-line growth. TriMas has a robust pipeline of potential M&A in the Packaging and Aerospace segments.
TriMas expects year-over-year sales growth of 10-13% in 2021, driven by acquisitions, pick up in industrial demand and a benefit of its diversified end markets. The company anticipates adjusted earnings per share between $2.18 and $2.27. The mid-point of the range indicates year-over-year growth of 16%.
TriMas has a strong pipeline of both product and process innovation that will sustain long-term growth and position its businesses to capitalize on market opportunities as well as minimize market disruptions. The Packaging segment recently commercialized a single-polymer dispensing pump, which is ready for advanced design applications for customers serving the beauty, personal care and other end markets.
Price Performance
Shares of TriMas have gained 8.7% in the past year compared with the industry’s growth of 1%.
Zacks Rank & Stocks to Consider
TriMas carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector include SiteOne Landscape Supply (SITE - Free Report) , A. O. Smith Corporation (AOS - Free Report) and ScanSource, Inc. (SCSC - Free Report) . While SiteOne Landscape and A. O. Smith flaunt a Zacks Rank #1 (Strong Buy), ScanSource carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
In a year’s time, the company’s shares have increased 68%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 44% in a year’s time. The company has a trailing four-quarter earnings surprise of 16.8%, on average.
ScanSource has a projected earnings growth rate of around 19% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
The company’s shares have appreciated 23% in the past year. ScanSource has a trailing four-quarter earnings surprise of 34.6%, on average.