Shiloh Industries, Inc. (SHLO - Free Report) yesterday announced that it has agreed to acquire two facilities of Brabant Alucast Services B.V. for undisclosed amounts. Two agreements have been signed between the parties for the Brabant Alucast Italy and Brabant Alucast Netherlands facilities. The company’s share price increased roughly 4.1% to close at $7.35 yesterday.
Brabant Alucast Services B.V. specializes in manufacturing high-pressure diecast components from aluminium and magnesium. These components are supplied to customers in the automotive industry. The company has four facilities in Europe, each at Wendlingen GmbH, Heijen B.V., Oss B.V. and Verrès sites.
Details of the Deal
The buyouts of Verrès, Italy-based and Oss B.V., Netherlands-based facilities will strengthen Shiloh Industries’ existing magnesium casting operations and enable easy expansion in aluminium diecast components manufacturing market. Also, its operations globally will get a boost from the twin transactions.
These facilities will enhance Shiloh Industries’ revenue generating capabilities by €110 million annually while will also add 600 highly skilled people to its workforce.
Subject to receipt of regulatory approvals, Shiloh Industries anticipates completing the acquisitions on Feb 28, 2018.
Zacks Rank & Stocks to Consider
Shiloh Industries carries a Zacks Rank #3 (Hold). In the last three months, the company’s shares have declined 14.6%, underperforming 21.3% gain recorded by the industry it belongs.
Earnings estimates for the stock for fiscal 2018 (ending October 2018) remained stable at 80 cents per share in the last 30 days.
Some stocks worth considering in the industry are Olympic Steel, Inc. (ZEUS - Free Report) , Schnitzer Steel Industries, Inc. (SCHN - Free Report) and Steel Dynamics, Inc. (STLD - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel’s earnings estimates for 2018 have increased in the last 60 days. Also, the company pulled off an average positive earnings surprise of 26.09% in the last four quarters.
Schnitzer Steel delivered an average positive earnings surprise of 0.81% in the last four quarters. Its earnings expectations for fiscal 2018 (ending August 2018) and fiscal 2019 (ending August 2019) have improved over the past 60 days.
Steel Dynamics’ earnings estimates for 2018 and 2019 were revised upward in the last 60 days. Also, it delivered an average positive earnings surprise of 6.49% in the last four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>