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IDEX (IEX) to Acquire KZValve, Enhance Product Offerings
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IDEX Corporation (IEX - Free Report) yesterday announced that it has entered into a deal to buy KZValve. The financial terms of the agreement have been kept under wraps.
IDEX's shares declined 1.6% yesterday, eventually closing the trading session at $195.37.
Based in Greenwood, NE, KZValve specializes in manufacturing electric valves and controllers for several end markets, including agriculture, emergency fire services and water filtration. Some notable products offered by the company are waterproof motorized valves, controllers, manifolds and other accessories. The company, which employs around 100 people, is expected to generate sales of about $28 million in 2022.
Acquisition Rationale
The deal is in sync with IDEX’s policy of acquiring businesses for expanding its presence and customer base in the agriculture market. The inclusion of KZValve’s expertise in waterproof motorized valve solutions supported by its strong product portfolio and innovative capabilities will augment and boost the portfolio of fluid management solutions at IDEX’s Banjo Corporation business.
The company anticipates the buyout to be completed in the second quarter of 2022, subject to certain regulatory approvals.
Upon completion of the deal, KZValve will be integrated into the agriculture group of IDEX’s Fluid & Metering Technologies segment. The segment provides displacement pumps, injectors, flow meters and related controls for the movement of liquids and gases in various end markets, including general industrial, chemical, agricultural and water & wastewater. The segment contributed 35.3% to IDEX’s total revenues in the fourth quarter of 2021.
Other Notable Acquisitions
In March 2022, IDEX acquired Nexsight, LLC and its WinCan, Envirosight, MyTana and Pipeline Renewal Technologies businesses. The buyout is expected to expand the company’s presence and customer base in the intelligent water technologies market. In June 2021, it acquired Airtech Group, US Valve Corporation and other entities. The acquisition added vigor to its Health & Science Technology segment. Also, the buyout of Abel Pumps L.P. in March 2021 enhanced its pump platform within the Fluid & Metering Technologies segment. Acquisitions contributed 7% and 5% to revenue growth in the third and fourth quarters of 2021, respectively.
Zacks Rank, Estimates and Price Performance
The company, with a $14.9-billion market capitalization, currently carries a Zacks Rank #2 (Buy). It is poised to benefit from a diversified business structure, strengthening end markets and buyouts in the quarters ahead. However, supply-chain challenges and cost inflation might affect its performance.
The Zacks Consensus Estimate for IDEX’s earnings is pegged at $7.55 for 2022 and $8.09 for 2023, suggesting growth of 0.8% and 1.3% from the respective 30-day-ago figures.
Image Source: Zacks Investment Research
The company’s shares have lost 15.3% compared with 10.3% decline recorded by the industry in the past three months.
Other Key Picks
Some other top-ranked companies from the same space are discussed below.
Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank #2. The company delivered a four-quarter earnings surprise of 9.85%, on average.
Nordson’s earnings estimates have increased 0.3% for fiscal 2022 (ending October 2022) in the past 30 days. Its shares have lost 8.3% in the past three months.
Standex International Corporation (SXI - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 30 days, Standex’s earnings estimates have been stable for fiscal 2022 (ending June 2022). SXI’s shares have lost 6.5% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 14.19%, on average.
In the past 30 days, Ferguson’s earnings estimates have increased 7% for fiscal 2022 (ending July 2022). FERG’s shares have lost 24.3% in the past three months.
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IDEX (IEX) to Acquire KZValve, Enhance Product Offerings
IDEX Corporation (IEX - Free Report) yesterday announced that it has entered into a deal to buy KZValve. The financial terms of the agreement have been kept under wraps.
IDEX's shares declined 1.6% yesterday, eventually closing the trading session at $195.37.
Based in Greenwood, NE, KZValve specializes in manufacturing electric valves and controllers for several end markets, including agriculture, emergency fire services and water filtration. Some notable products offered by the company are waterproof motorized valves, controllers, manifolds and other accessories. The company, which employs around 100 people, is expected to generate sales of about $28 million in 2022.
Acquisition Rationale
The deal is in sync with IDEX’s policy of acquiring businesses for expanding its presence and customer base in the agriculture market. The inclusion of KZValve’s expertise in waterproof motorized valve solutions supported by its strong product portfolio and innovative capabilities will augment and boost the portfolio of fluid management solutions at IDEX’s Banjo Corporation business.
The company anticipates the buyout to be completed in the second quarter of 2022, subject to certain regulatory approvals.
Upon completion of the deal, KZValve will be integrated into the agriculture group of IDEX’s Fluid & Metering Technologies segment. The segment provides displacement pumps, injectors, flow meters and related controls for the movement of liquids and gases in various end markets, including general industrial, chemical, agricultural and water & wastewater. The segment contributed 35.3% to IDEX’s total revenues in the fourth quarter of 2021.
Other Notable Acquisitions
In March 2022, IDEX acquired Nexsight, LLC and its WinCan, Envirosight, MyTana and Pipeline Renewal Technologies businesses. The buyout is expected to expand the company’s presence and customer base in the intelligent water technologies market. In June 2021, it acquired Airtech Group, US Valve Corporation and other entities. The acquisition added vigor to its Health & Science Technology segment. Also, the buyout of Abel Pumps L.P. in March 2021 enhanced its pump platform within the Fluid & Metering Technologies segment. Acquisitions contributed 7% and 5% to revenue growth in the third and fourth quarters of 2021, respectively.
Zacks Rank, Estimates and Price Performance
The company, with a $14.9-billion market capitalization, currently carries a Zacks Rank #2 (Buy). It is poised to benefit from a diversified business structure, strengthening end markets and buyouts in the quarters ahead. However, supply-chain challenges and cost inflation might affect its performance.
The Zacks Consensus Estimate for IDEX’s earnings is pegged at $7.55 for 2022 and $8.09 for 2023, suggesting growth of 0.8% and 1.3% from the respective 30-day-ago figures.
Image Source: Zacks Investment Research
The company’s shares have lost 15.3% compared with 10.3% decline recorded by the industry in the past three months.
Other Key Picks
Some other top-ranked companies from the same space are discussed below.
Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank #2. The company delivered a four-quarter earnings surprise of 9.85%, on average.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nordson’s earnings estimates have increased 0.3% for fiscal 2022 (ending October 2022) in the past 30 days. Its shares have lost 8.3% in the past three months.
Standex International Corporation (SXI - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 30 days, Standex’s earnings estimates have been stable for fiscal 2022 (ending June 2022). SXI’s shares have lost 6.5% in the past three months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 14.19%, on average.
In the past 30 days, Ferguson’s earnings estimates have increased 7% for fiscal 2022 (ending July 2022). FERG’s shares have lost 24.3% in the past three months.