Altra Industrial Motion Acquires Guardian Industries, Gains 1.37% - Analyst Blog

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Altra Industrial Motion Corp. ( AIMC ), yesterday, announced the acquisition of Guardian Industries, Inc., a well recognized supplier of flywheel, motion control and general industrial couplings. The financial terms of the transaction were not disclosed. Positive reaction followed the announcement, with the company gaining 1.37% at the end of the day.

Guardian Industries, Inc. with employee strength of 47, generated revenues of approximately $10 million in 2013.

The acquired assets will compliment Altra Industrial Motion's existing line of business and enable further expansion in energy, farm & agriculture and specialty machinery end markets. Excluding any acquisition-related costs, the transaction will be accretive to earnings in the range of 1−2 cents per share.


Acquisitions are Altra Industrial Motion's favored mode for expansion of its geographical reach and product lines. Prior to the latest takeover, the company added Svendborg Brakes A/S and S.B. Patent Holding ApS, a manufacturer of premium quality caliper brakes, to its portfolio in Dec 2013.

Altra Industrial Motion is expected to release its second-quarter results on Jul 24. The Zacks Consensus Estimate is pegged at 49 cents per share for the quarter, and stands at $1.98 for 2014 and $2.32 for 2015. These estimates reflect year-over-year growth of 20.1% for the second quarter, 20.4% for 2014 and 17.3% for 2015. Earnings in the next five years are anticipated to grow by 17.8% versus 14.7% estimated for the industry.

Altra Industrial Motion presently has a market capitalization of $998.5 million and carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Blount International Inc. ( BLT ), EnPro Industries, Inc. ( NPO ) and Dover Corporation ( DOV ). While Blount International and EnPro Industries sport a Zacks Rank #1 (Strong Buy), Dover Corp. holds a Zacks Rank #2 (Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: DOV , AIMC , NPO , BLT

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