ASSA ABLOY AB (ASAZY - Free Report) recently entered into a definitive deal to acquire LUX-IDent. Conditional upon regulatory approvals and customary closing conditions, the deal is anticipated to conclude in the fourth quarter of 2019. The financial terms of the transaction were kept under wraps.
ASSA ABLOY’s share price increased 0.8% to close at $10.77 on Thursday.
Based in Lanškroun, Czech Republic, LUX-IDent is primarily engaged in producing and marketing various transponders for applications that ranges from access and security to industrial logistics. LUX-IDent’s core expertise lies in the manufacture of radio frequency identification (RFID) inlays in frequency bands of 125 kHz and 13.56 MHz. Notably, its products — including prelaminated inlays, HF & NFC inlays, UHF inlays, smart labels and glass transponders — have a strong customer base in Europe with growing base in the United States and Canada.
The buyout will enable ASSA ABLOY to strengthen its RFID component offerings. Backed by expanded product offerings in the RFID components segment, the company expects to gain access to a larger customer base, particularly in the central and eastern Europe region. Notably, ASSA ABLOY expects this acquisition to be neutral to its earnings per share from the beginning.
Other Inorganic Moves
A notable inorganic move by the company was the acquisition of Australia-based Placard in September 2019. The buyout will enable the company to strengthen its secure cards offering, particularly in the Australasia region. In addition, it completed the buyout of LifeSafety Power in the same month. Notably, this buyout will help ASSA ABLOY in strengthening its offerings within the access control portfolio.
Further, the company entered into an agreement to purchase the U.K.-based De La Rue’s international identity solutions business in June 2019. Notably, this buyout is likely to boost ASSA ABLOY’s secure identity solutions offerings.
ASSA ABLOY currently carries a Zacks Rank #4 (Sell). Year to date, the stock has gained 21.4% compared with the industry’s growth of 24.6%.
Some better-ranked stocks from the Zacks Industrial Products sector are Brady Corporation (BRC - Free Report) , Lakeland Industries, Inc. (LAKE - Free Report) and Cintas Corporation (CTAS - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brady delivered average positive earnings surprise of 9.68% in the trailing four quarters.
Lakeland Industries delivered average positive earnings surprise of 325.89% in the trailing four quarters.
Cintas delivered average positive earnings surprise of 6.26% in the trailing four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>