Badger Meter Inc.
) gained 0.6% as the company announced that it has signed a stock
purchase agreementto acquire National Meter and Automation, Inc,
the major distributor of its products for the municipal water
utility market. The acquisition will add approximately $15 million
of incremental revenues to Badger Meter (after elimination of
Denver, CO-based National Meter caters to customers in Colorado,
California, Nevada, Arizona and southern Wyoming. National meter
has been distributing Badger Meter's products since 2004.
The acquisition is expected to close on Oct 1, 2014, after which
National Meter will become a regional distribution center for
Badger Meter. In addition to its primary product line of water
meters and meter reading systems, National Meter also provide
services including meter testing, leak detection, water audits,
meter and meter reading system installation and meter
Badger Meter reported record second-quarter 2014 earnings per
share of 61 cents, up 39% year over year, which outperformed the
Zacks Consensus Estimate of 59 cents driven by higher sales of
municipal water products. Net sales increased 8% year over year to
$96 million in the reported quarter, in line with the Zacks
Consensus Estimate. The growth was aided by higher sales of
residential and commercial municipal water products, partly offset
by decrease in industrial and specialty product sales.
Badger Meter will continue to benefit from investment in
research and development as well as the introduction of several new
products. Innovation in product offering is a key element of Badger
Meter's growth strategy. Furthermore, the Elster business and the
ongoing economic recovery will help to drive growth. Moreover,
Badger Meter will benefit from improved volumes in both its
municipal and industrial product lines.
Headquartered in Milwaukee, WI, Badger Meter provides liquid
flow measurement products and control technology. It also serves
water and gas utilities, municipalities and industrial customers
worldwide. The company's products, which are developed both
internally and in collaboration with other technology companies,
are used in a wide variety of applications related to water, oil
At present, Badger Meter has a Zacks Rank #2 (Buy). Some other
stocks worth considering in the sector include Woodward, Inc. (
), Roper Industries Inc. (
) and Cognex Corporation (
). All these stocks carry the same rank as Badger Meter.
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