Altra Industrial Motion Corp.
), 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.
EnPro Industries, Inc.
). 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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