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Barnes (B) to Acquire MB Aerospace, Boost OEM Offerings
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Barnes Group (B - Free Report) has entered into a definitive agreement to acquire MB Aerospace, a provider of precision aero-engine component manufacturing and repair services. The deal has an enterprise value of approximately $740 million.
The acquisition, which is the largest in Barnes’ history, is expected to expand its aerospace business’ global original equipment manufacturing (OEM) offering and aftermarket repair capabilities. MB Aerospace’s complementary program focus, global operations, technical capabilities and product offerings are expected to boost Barnes’ productivity.
With this acquisition and its multi-phase transformation initiative, Barnes expects to deliver enhanced shareholder value. The addition of MB Aerospace will strengthen B’s ability to support customer needs throughout the product lifecycle, beginning from new product development and manufacturing to OEM-approved repair solutions for critical structural and rotating aero-engine components.
The buyout will enhance Barnes’ ability to deliver value-add solutions across the aero-engine value chain, broaden customer relationships and expand exposure to the defense industry. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in the fourth quarter of 2023. Following closing, MB Aerospace will be part of Barnes’ Aerospace segment.
Upon closing, B expects net debt to consolidated EBITDA to be between 3.7x and 3.9x. The company plans to reduce the same to below 3.0x within 12 months and 2.5x within 24 months following closing. The acquisition is expected to be accretive to revenues, adjusted operating margin and adjusted earnings in 2024.
Zacks Rank & Other Stocks to Consider
Barnes presently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks within the Manufacturing - General Industrial industry are as follows:
Flowserve has an estimated earnings growth rate of 64.5% for the current year. Shares of the company have gained 8.9% in a year.
Graco (GGG - Free Report) currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 7.9%, on average.
Graco has an estimated earnings growth rate of 16.4% for the current year. Shares of the company have surged 23.9% in a year.
Ingersoll Rand (IR - Free Report) presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 12.6%, on average.
Ingersoll Rand has an estimated earnings growth rate of 14.8% for the current year. Shares of the company have jumped 23% in a year.
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Barnes (B) to Acquire MB Aerospace, Boost OEM Offerings
Barnes Group (B - Free Report) has entered into a definitive agreement to acquire MB Aerospace, a provider of precision aero-engine component manufacturing and repair services. The deal has an enterprise value of approximately $740 million.
The acquisition, which is the largest in Barnes’ history, is expected to expand its aerospace business’ global original equipment manufacturing (OEM) offering and aftermarket repair capabilities. MB Aerospace’s complementary program focus, global operations, technical capabilities and product offerings are expected to boost Barnes’ productivity.
With this acquisition and its multi-phase transformation initiative, Barnes expects to deliver enhanced shareholder value. The addition of MB Aerospace will strengthen B’s ability to support customer needs throughout the product lifecycle, beginning from new product development and manufacturing to OEM-approved repair solutions for critical structural and rotating aero-engine components.
Barnes Group, Inc. Price
Barnes Group, Inc. price | Barnes Group, Inc. Quote
The buyout will enhance Barnes’ ability to deliver value-add solutions across the aero-engine value chain, broaden customer relationships and expand exposure to the defense industry. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in the fourth quarter of 2023. Following closing, MB Aerospace will be part of Barnes’ Aerospace segment.
Upon closing, B expects net debt to consolidated EBITDA to be between 3.7x and 3.9x. The company plans to reduce the same to below 3.0x within 12 months and 2.5x within 24 months following closing. The acquisition is expected to be accretive to revenues, adjusted operating margin and adjusted earnings in 2024.
Zacks Rank & Other Stocks to Consider
Barnes presently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks within the Manufacturing - General Industrial industry are as follows:
Flowserve (FLS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 2.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flowserve has an estimated earnings growth rate of 64.5% for the current year. Shares of the company have gained 8.9% in a year.
Graco (GGG - Free Report) currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 7.9%, on average.
Graco has an estimated earnings growth rate of 16.4% for the current year. Shares of the company have surged 23.9% in a year.
Ingersoll Rand (IR - Free Report) presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 12.6%, on average.
Ingersoll Rand has an estimated earnings growth rate of 14.8% for the current year. Shares of the company have jumped 23% in a year.