Industrial products company,
), recently concluded the acquisition of Scotland-based Viking
SeaTech. The agreed price of $225 million (£150 million) was paid
via Actuant's cash and revolving credit facility.
Viking SeaTech provides consistent service, expertise and
innovations globally to meet the demands of the world's offshore
energy assets. The company's services include marine engineering,
survey & positioning, moorings, inspections and maintenance.
However, a majority of the revenues is derived from the company's
offshore vessel mooring solutions which include design, rental,
installation and inspection. Viking generated revenues of roughly
$90.0 million in the past twelve months.
Viking SeaTech serves its customers primarily in the regions
like U.K., Norway and Australia. Subsequent to the acquisition,
Viking SeaTech's revenues will be included in Actuant's Energy
segment. The company believes that it will derive great synergies
from the acquisition because of the similarity of operations of
the two companies.
The company has been making acquisitions for a long time. The
company earns a portion of its revenues from the acquisitions
undertaken in the past, contributing roughly 8% to fiscal 2012
revenue growth as well as 3% to fiscal third-quarter 2013 revenue
Actuant's strong cash position enables it to take on strategic
acquisitions. Actuant expects to reach a free cash flow level of
$200.0 million in fiscal 2013. It also expects to generate free
cash flow to the tune of $175.0 million in fiscal 2014.
The expected synergies out of the deal, along with other
details will be revealed in Actuant's fiscal fourth-quarter 2013
results to be announced on Oct 1, 2013. The company has a Zacks
Consensus Estimate of 50 cents for the fourth quarter of fiscal
2013, representing a year-over-year decline of 9.7%. The Zacks
Consensus Estimate for fiscal 2013 stands at $1.87, representing
a year-over-year decline of 9.9%.
Actuant currently carries a Zacks Rank #3 (Hold). Other stocks
worth a look in the industry are
Alamo Group, Inc.
Barnes Group Inc.
). While Alamo Group carries a Zacks Rank #1 (Strong Buy), AGCO
Corp. and Barnes Group carry a Zacks Rank #2 (Buy).
AGCO CORP (AGCO): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis
ACTUANT CORP (ATU): Free Stock Analysis
BARNES GRP (B): Free Stock Analysis Report
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