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Gorman-Rupp's Patterson Pump Intends to Buy Morrison
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Machinery company, Gorman-Rupp Co. (GRC - Free Report) recently announced that its subsidiary, Patterson Pump Company has communicated its intention to acquire Florida-based Morrison Pump Company through a letter of intent. The financial terms of the proposed acquisition were undisclosed.
As revealed, Morrison Pump Company is recognised as a manufacturer of large capacity pumping stations. It also provides related-services mainly for flood control and water management programs of municipalities. The firms cater to markets in the Americas, the Middle East and Asia.
Gorman-Rupp anticipates that the acquired assets will be integrated with Patterson Pump Company and subsequently compliment its business of manufacturing large-scale flood control, wastewater management and fire suppression pumps and pump systems. Also, Morrison is likely to generate roughly $7 million in revenues in 2016.
We believe such inorganic ways of strengthening its business, supported by a solid balance sheet will allow Gorman-Rupp to offer better and innovative products to customers in various operating regions. Also, the company anticipates benefitting from its cost-savings strategies and efforts to improve operational efficiency.
Gorman-Rupp’s financial performance in three of last four quarters has been impressive, with an average positive earnings surprise of 10.08%. Last quarter, Gorman-Rupp’s earnings of 25 cents per share exceeded the Zacks Consensus Estimate of 22 cents by 13.6%. Currently, the Zacks Consensus Estimate for the stock is at 95 cents per share for 2016 and $1.05 for 2017.
With a market capitalization of $716.5 million, Gorman-Rupp presently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include DXP Enterprises, Inc. (DXPE - Free Report) , Tennant Company (TNC - Free Report) and Illinois Tool Works Inc. (ITW - Free Report) . While both DXP Enterprises and Tennant Company sport a Zacks Rank #1 (Strong Buy), Illinois Tool Works carries the same Zacks Rank as Gorman-Rupp.
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Gorman-Rupp's Patterson Pump Intends to Buy Morrison
Machinery company, Gorman-Rupp Co. (GRC - Free Report) recently announced that its subsidiary, Patterson Pump Company has communicated its intention to acquire Florida-based Morrison Pump Company through a letter of intent. The financial terms of the proposed acquisition were undisclosed.
As revealed, Morrison Pump Company is recognised as a manufacturer of large capacity pumping stations. It also provides related-services mainly for flood control and water management programs of municipalities. The firms cater to markets in the Americas, the Middle East and Asia.
Gorman-Rupp anticipates that the acquired assets will be integrated with Patterson Pump Company and subsequently compliment its business of manufacturing large-scale flood control, wastewater management and fire suppression pumps and pump systems. Also, Morrison is likely to generate roughly $7 million in revenues in 2016.
We believe such inorganic ways of strengthening its business, supported by a solid balance sheet will allow Gorman-Rupp to offer better and innovative products to customers in various operating regions. Also, the company anticipates benefitting from its cost-savings strategies and efforts to improve operational efficiency.
Gorman-Rupp’s financial performance in three of last four quarters has been impressive, with an average positive earnings surprise of 10.08%. Last quarter, Gorman-Rupp’s earnings of 25 cents per share exceeded the Zacks Consensus Estimate of 22 cents by 13.6%. Currently, the Zacks Consensus Estimate for the stock is at 95 cents per share for 2016 and $1.05 for 2017.
GORMAN RUPP CO Price and Consensus
GORMAN RUPP CO Price and Consensus | GORMAN RUPP CO Quote
Zacks Rank & Other Stocks to Consider
With a market capitalization of $716.5 million, Gorman-Rupp presently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include DXP Enterprises, Inc. (DXPE - Free Report) , Tennant Company (TNC - Free Report) and Illinois Tool Works Inc. (ITW - Free Report) . While both DXP Enterprises and Tennant Company sport a Zacks Rank #1 (Strong Buy), Illinois Tool Works carries the same Zacks Rank as Gorman-Rupp.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>