) recently announced the acquisition of Teseq Group for CFH 83
million ($92 million).
Headquartered in Luterbach, Switzerland, the privately held
Teseq supplies Electromagnetic compatibility (EMC) test
solutions. It provides EMC compliance testing systems for a wide
range of industries, including aerospace, automotive, consumer
electronics, medical equipment, telecommunications and
transportation. The company has direct sales offices in China,
France, Germany, Japan, Singapore, Switzerland, Taiwan, the U.K.
and the U.S. Ametek has annual sales of approximately CHF 48
million ($53 million).
Upon the completion of the deal, Teseq will come under
Ametek's Electronic Instruments Group (EIG) segment. In
third-quarter 2013, EIG comprised 56% of Ametek's sales, which
were up 9.3% from the year-ago quarter to $499.8 million driven
by strength in Aerospace, and oil and gas businesses, combined
with the contribution from Micro-Poise and Controls Southeast
The acquisition, effective immediately, will extend Ametek's
capabilities in serving its customers in the electrical test and
measurement business. It will enable the company to provide
improved product offerings and increase market share, thereby
expanding the company's customer base.
Ametek is quite active on the M&A front. Last month, the
company acquired the privately held Powervar for about $128
million which provides engineered and customized products for use
in critical applications. In Oct 2013, Ametek acquired
Canada-based Creaform, Inc., a manufacturer of portable 3D
measurement technologies and 3D engineering services for
approximately $120 million. In Aug 2013, the company took over
Controls Southeast, Inc., a leading manufacturer of
custom-engineered thermal solutions for approximately $160
The company's acquisition pipeline remains quite robust with
opportunities to further expand and strengthen its portfolio.
In third-quarter fiscal 2013, Ametek earned revenues of $890.0
million. Revenues were up 1.3% sequentially and 6.0% year over
year due to strong demand in the Electronic as well as
Electromechanical segments. Earnings of 52 cents were in line
with the Zacks Consensus Estimate.
Currently, Ametek has a Zacks Rank #2 (Buy). Other stocks
worth considering in its sector are
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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