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IDEX Boosts Product Portfolio With the Acquisition of Mott
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IDEX Corporation (IEX - Free Report) recently completed the acquisition of Mott Corporation and its subsidiaries (Mott). The transaction is valued at $1 billion (including a $100 million tax benefit). The valuation equates to approximately 19 times Mott’s forecasted EBITDA for the full year of 2024 and a multiple in the mid-teens based on the projected EBITDA for 2025. This deal was announced in July 2024.
Based in Farmington, CT, Mott is engaged in designing and manufacturing sintered porous metal components and engineered solutions for fluidic applications. It collaborates with leading customers to create and deliver advanced solutions for complex filtration and flow control challenges. The company employs approximately 500 personnel.
Acquisition Rationale of IEX
This acquisition is in sync with IEX’s policy of acquiring businesses to strengthen its business and expand its product portfolio and market share. The inclusion of Mott’s technical and application expertise will bolster its micro-precision technology offerings. It will enable IEX to penetrate and diversify its offerings in key markets such as semiconductor fabrication, medical technologies and water purification.
The previous acquisitions of Muon Group, Iridian Spectral Technologies and STC Material Solutions enhanced IEX’s specialized material processing capabilities. Mott will be incorporated into the company’s Health & Science Technologies (HST) segment.
Other Notable Acquisitions by IEX
In December 2023, IEX acquired advanced material science solutions provider, STC Material Solutions, for a cash consideration of $206 million. This acquisition expanded its expertise in material sciences and offered significant opportunities to collaborate with other IDEX-critical components businesses on comprehensive solution sets for customers. This acquisition expanded the HST segment.
The acquisition of Iridian Spectral (May 2023) expanded IDEX’s array of optical technology offerings, augmenting its HST segment. Its November 2022 acquisition of Muon Group, which was also incorporated within the HST segment, further expanded its precision technology offerings. Commercial synergy potential from the combined entities is expected to boost offerings for new and existing customers.
IEX’s Zacks Rank and Price Performance
IEX currently carries a Zacks Rank #4 (Sell). In the past year, the company’s shares have lost 9.2% against the industry’s 17.7% growth.
Image Source: Zacks Investment Research
IDEX is plagued by weakness in the HST segment due to declining life sciences, analytical instrumentation and semiconductor markets. Lower volumes in the industrial markets are ailing the Fluid & Metering Technologies segment’s performance.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 3.8%.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 2%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 earnings has increased 1.1%.
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IDEX Boosts Product Portfolio With the Acquisition of Mott
IDEX Corporation (IEX - Free Report) recently completed the acquisition of Mott Corporation and its subsidiaries (Mott). The transaction is valued at $1 billion (including a $100 million tax benefit). The valuation equates to approximately 19 times Mott’s forecasted EBITDA for the full year of 2024 and a multiple in the mid-teens based on the projected EBITDA for 2025. This deal was announced in July 2024.
Based in Farmington, CT, Mott is engaged in designing and manufacturing sintered porous metal components and engineered solutions for fluidic applications. It collaborates with leading customers to create and deliver advanced solutions for complex filtration and flow control challenges. The company employs approximately 500 personnel.
Acquisition Rationale of IEX
This acquisition is in sync with IEX’s policy of acquiring businesses to strengthen its business and expand its product portfolio and market share. The inclusion of Mott’s technical and application expertise will bolster its micro-precision technology offerings. It will enable IEX to penetrate and diversify its offerings in key markets such as semiconductor fabrication, medical technologies and water purification.
The previous acquisitions of Muon Group, Iridian Spectral Technologies and STC Material Solutions enhanced IEX’s specialized material processing capabilities. Mott will be incorporated into the company’s Health & Science Technologies (HST) segment.
Other Notable Acquisitions by IEX
In December 2023, IEX acquired advanced material science solutions provider, STC Material Solutions, for a cash consideration of $206 million. This acquisition expanded its expertise in material sciences and offered significant opportunities to collaborate with other IDEX-critical components businesses on comprehensive solution sets for customers. This acquisition expanded the HST segment.
The acquisition of Iridian Spectral (May 2023) expanded IDEX’s array of optical technology offerings, augmenting its HST segment. Its November 2022 acquisition of Muon Group, which was also incorporated within the HST segment, further expanded its precision technology offerings. Commercial synergy potential from the combined entities is expected to boost offerings for new and existing customers.
IEX’s Zacks Rank and Price Performance
IEX currently carries a Zacks Rank #4 (Sell). In the past year, the company’s shares have lost 9.2% against the industry’s 17.7% growth.
Image Source: Zacks Investment Research
IDEX is plagued by weakness in the HST segment due to declining life sciences, analytical instrumentation and semiconductor markets. Lower volumes in the industrial markets are ailing the Fluid & Metering Technologies segment’s performance.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 3.8%.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 2%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 earnings has increased 1.1%.