We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RBC Bearings to Acquire VACCO Industries & Boost Product Portfolio
Read MoreHide Full Article
RBC Bearings Incorporated (RBC - Free Report) recently announced that it has signed a definitive deal with ESCO Technologies Inc. (ESE - Free Report) to acquire VACCO Industries for about $310 million in cash. RBC is expected to fund the transaction through borrowings under its current credit agreement and cash on hand.
RBC’s shares were down 1% yesterday to eventually close the trading session at $373.30.
Based in South El Monte, CA, VACCO is engaged in producing valves, filters, regulators and other precision components and subsystems for the space and naval defense sectors. The firm’s innovative engineered solutions are designed to support critical missions for customers across the defense, space and commercial markets. VACCO generated revenues of roughly $118 million in the trailing 12 months ended March 31, 2025.
Acquisition Rationale
The latest buyout is in sync with RBC Bearings’ policy of acquiring companies to strengthen its business and product portfolio. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong designing, engineering and production capabilities, will enable RBC to expand its customer offerings in the defense, space and commercial markets. It will incorporate VACCO into its Aerospace and Defense segment.
Management expects the transaction to be completed this summer, conditioned on the fulfillment of certain customary closing conditions.
RBC’s Zacks Rank & Price Performance
RBC Bearings, with a $11.8 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is grappling with rising operating costs and expenses. In first-quarter 2025, its cost of sales rose 3.8% year over year, while selling, general and administrative expenses increased 12% year over year. However, strength in its Aerospace/Defense segment, along with recovery in the Industrial unit, bodes well.
Image Source: Zacks Investment Research
The company’s shares have gained 4.4% against the industry’s decline of 0.8% in the past three months.
The Zacks Consensus Estimate for RBC’s current-year earnings has declined 0.9% over the last 60 days.
Stocks to Consider
A couple of better-ranked stocks from the same space are discussed below.
In the past 60 days, the Zacks Consensus Estimate for Gorman-Rupp’s 2025 earnings has increased 0.5%.
Broadwind Energy (BWEN - Free Report) currently carries a Zacks Rank of 2. BWEN delivered a trailing four-quarter average earnings surprise of 61.1%. In the past 60 days, the consensus estimate for Broadwind Energy’s 2025 earnings has increased 33.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
RBC Bearings to Acquire VACCO Industries & Boost Product Portfolio
RBC Bearings Incorporated (RBC - Free Report) recently announced that it has signed a definitive deal with ESCO Technologies Inc. (ESE - Free Report) to acquire VACCO Industries for about $310 million in cash. RBC is expected to fund the transaction through borrowings under its current credit agreement and cash on hand.
RBC’s shares were down 1% yesterday to eventually close the trading session at $373.30.
Based in South El Monte, CA, VACCO is engaged in producing valves, filters, regulators and other precision components and subsystems for the space and naval defense sectors. The firm’s innovative engineered solutions are designed to support critical missions for customers across the defense, space and commercial markets. VACCO generated revenues of roughly $118 million in the trailing 12 months ended March 31, 2025.
Acquisition Rationale
The latest buyout is in sync with RBC Bearings’ policy of acquiring companies to strengthen its business and product portfolio. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong designing, engineering and production capabilities, will enable RBC to expand its customer offerings in the defense, space and commercial markets. It will incorporate VACCO into its Aerospace and Defense segment.
Management expects the transaction to be completed this summer, conditioned on the fulfillment of certain customary closing conditions.
RBC’s Zacks Rank & Price Performance
RBC Bearings, with a $11.8 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is grappling with rising operating costs and expenses. In first-quarter 2025, its cost of sales rose 3.8% year over year, while selling, general and administrative expenses increased 12% year over year. However, strength in its Aerospace/Defense segment, along with recovery in the Industrial unit, bodes well.
Image Source: Zacks Investment Research
The company’s shares have gained 4.4% against the industry’s decline of 0.8% in the past three months.
The Zacks Consensus Estimate for RBC’s current-year earnings has declined 0.9% over the last 60 days.
Stocks to Consider
A couple of better-ranked stocks from the same space are discussed below.
The Gorman-Rupp Company (GRC - Free Report) currently carries a Zacks Rank #2 (Buy). GRC delivered a trailing four-quarter average earnings surprise of 2.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the Zacks Consensus Estimate for Gorman-Rupp’s 2025 earnings has increased 0.5%.
Broadwind Energy (BWEN - Free Report) currently carries a Zacks Rank of 2. BWEN delivered a trailing four-quarter average earnings surprise of 61.1%. In the past 60 days, the consensus estimate for Broadwind Energy’s 2025 earnings has increased 33.2%.