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John Bean (JBT) to Sell AeroTech Business to Oshkosh for $800M
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John Bean Technologies Corporation (JBT - Free Report) announced that it signed a definitive contract to sell its AeroTech business to Oshkosh Corporation (OSK - Free Report) for $800 million. The all-cash transaction is expected to close in the third quarter of 2023, subject to customary post-closing items.
The purchase price equates to a multiple of around 14.7x AeroTech's reported adjusted EBITDA over the trailing four quarters.
The AeroTech segment generated 27% of JBT’s 2022 revenues. The segment designs, manufactures and services technologically sophisticated airport ground support and gate equipment. It also provides services for airport authorities; airlines, airfreight and ground handling companies; and defense contractors.
AeroTech's divestment complements the John Bean's aim of becoming a pure-play provider of food and beverage solutions. The FoodTech franchise operates in highly robust markets. It has an impressive growth outlook and expanding margin profile, and generates a solid free cash flow.
The net proceeds from the transaction will go toward JBT’s stated capital allocation priorities, including debt reduction and continued disciplined FoodTech inorganic expansion.
AeroTech will be a strategic fit for Oshkosh, as its products are aligned with the latter’s technology-focus areas, including electrification, autonomy and active safety, and intelligent, connected products. With this move, Oshkosh will make its foray into the promising air transportation support market.
John Bean will classify AeroTech as held for sale starting second-quarter 2023. The segment’s financial results will be reported as discontinued operations in the company’s consolidated financial statements. sale is expected to have a dilutive impact on adjusted EPS from continuing operations of around 40 cents in the second quarter of 2023.
In the first quarter of 2023, John Bean reported quarterly earnings of 94 cents per share, beating the Zacks Consensus Estimate of 72 cents. This compares to earnings of 87 cents per share a year ago. The company posted revenues of $529.5 million for the quarter ended March 2023, up from year-ago revenues of $469.2 million.
Price Performance
John Bean’s shares have lost 9.6% in the past year compared with the industry’s fall of 11%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
John Bean currently carries a Zacks Rank #3 (Hold).
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 23% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 13% in the last year.
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John Bean (JBT) to Sell AeroTech Business to Oshkosh for $800M
John Bean Technologies Corporation (JBT - Free Report) announced that it signed a definitive contract to sell its AeroTech business to Oshkosh Corporation (OSK - Free Report) for $800 million. The all-cash transaction is expected to close in the third quarter of 2023, subject to customary post-closing items.
The purchase price equates to a multiple of around 14.7x AeroTech's reported adjusted EBITDA over the trailing four quarters.
The AeroTech segment generated 27% of JBT’s 2022 revenues. The segment designs, manufactures and services technologically sophisticated airport ground support and gate equipment. It also provides services for airport authorities; airlines, airfreight and ground handling companies; and defense contractors.
AeroTech's divestment complements the John Bean's aim of becoming a pure-play provider of food and beverage solutions. The FoodTech franchise operates in highly robust markets. It has an impressive growth outlook and expanding margin profile, and generates a solid free cash flow.
The net proceeds from the transaction will go toward JBT’s stated capital allocation priorities, including debt reduction and continued disciplined FoodTech inorganic expansion.
AeroTech will be a strategic fit for Oshkosh, as its products are aligned with the latter’s technology-focus areas, including electrification, autonomy and active safety, and intelligent, connected products. With this move, Oshkosh will make its foray into the promising air transportation support market.
John Bean will classify AeroTech as held for sale starting second-quarter 2023. The segment’s financial results will be reported as discontinued operations in the company’s consolidated financial statements. sale is expected to have a dilutive impact on adjusted EPS from continuing operations of around 40 cents in the second quarter of 2023.
In the first quarter of 2023, John Bean reported quarterly earnings of 94 cents per share, beating the Zacks Consensus Estimate of 72 cents. This compares to earnings of 87 cents per share a year ago. The company posted revenues of $529.5 million for the quarter ended March 2023, up from year-ago revenues of $469.2 million.
Price Performance
John Bean’s shares have lost 9.6% in the past year compared with the industry’s fall of 11%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
John Bean currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) and, The Manitowoc Company, Inc. (MTW - Free Report) . WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 23% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 13% in the last year.