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SPX FLOW (FLOW) to Merge With Lone Star Funds' Affiliate

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SPX FLOW, Inc. yesterday announced that it entered a purchase agreement with Lone Star Funds. Per the terms of the deal, Lone Star’s affiliate will acquire SPX FLOW in an all-cash transaction worth $3.8 billion.

The deal is approved by the board of directors of SPX FLOW. The company has also suspended quarterly dividend payments.

Shares of SPX FLOW gained 0.57% yesterday, ending the trading session at $86.12.

Lone Star, a private equity firm, provides ideas to funds engaged in investments in equity, real estate, credit, and others assets (financial).

Inside the Headlines

The transaction value, including debt assumption, represents a 40% premium over the last trading price of SPX FLOW’s shares on Jul 16, 2021. The deal has been considered by SPX FLOW in the best interests of its shareholders. Also, its combination with Lone Star will benefit customers with better products and services.

For Lone Start, the deal is a win-win situation as the SPX FLOW acquisition will enhance its product offerings, employee base and innovation capabilities.

The transaction is expected to be completed in the first half of 2022, after the receipt of approvals from shareholders of SPX FLOW and regulatory authorities, and fulfilling certain closing conditions.

After being acquired, SPX FLOW will cease its trading activities on The New York Stock Exchange.

Zacks Rank, Price Performance and Earnings Estimates

With a market capitalization of $3.6 billion, SPX FLOW currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past three months, SPX FLOW’s shares have increased 11.2% compared with the industry’s gain of 2.9%.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

The Zacks Consensus Estimate for the company’s earnings per share is pegged at $2.97 for 2021 and $4.00 for 2022, reflecting increases of 8.4% and 23.5% from the respective 60-day-ago figures. The consensus estimate for the fourth quarter of 2021 of 94 cents has jumped 17.5% over the pa    st 60 days.

SPX FLOW, Inc. Price and Consensus

 

SPX FLOW, Inc. Price and Consensus

SPX FLOW, Inc. price-consensus-chart | SPX FLOW, Inc. Quote

Other Stocks to Consider

Three other top-ranked stocks in the industry are discussed below.

Emerson Electric Co. (EMR - Free Report) presently carries a Zacks Rank #2 (Buy). EMR’s shares have declined 7% in the past three months.

In the past 60 days, the Zacks Consensus Estimate for Emerson’s earnings has increased 7% for fiscal 2022 (ending September 2022) and 7.5% for fiscal 2023 (ending September 2023). The last reported quarter’s earnings surprise for EMR was 1.68%.

A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2. Shares of AOS have gained 22.1% in the past three months.

The Zacks Consensus Estimate for A. O. Smith’s earnings has increased 6.6% for 2021 and 9.3% for 2022 in the past 60 days. AOS’ earnings surprise in the last reported quarter was 22.39%.

AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #2. AZZ’s share price reflects no change in the past three months.

In the past 60 days, the Zacks Consensus Estimate for AZZ’s earnings has increased 2% for fiscal 2022 (ending February 2022) and 5.1% for fiscal 2023 (ending February 2023). The last reported quarter’s earnings surprise for AZZ was 16.92%.


In-Depth Zacks Research for the Tickers Above


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Emerson Electric Co. (EMR) - free report >>

A. O. Smith Corporation (AOS) - free report >>

AZZ Inc. (AZZ) - free report >>