Emerson Electric Company
) acquired Enardo LLC to expand its Process Management division's
storage tank solutions for oil & gas, and petrochemical and
chemical industries. The financial details of the acquisition
were not disclosed.
The acquisition is a strategic decision by Emerson as the
business of Enardo perfectly complements the existing business of
Emerson's Process Management division. The Process Management
division primarily manufactures and markets pressure regulators,
relief valves and related products both domestically and
internationally. These technologies facilitate in controlling
pressure and flow of industrial gas and liquids, and natural gas
and propane gas.
Now with Enardo on board, Emerson expanded its safety
equipment portfolio as Enardo's business primarily comprises
manufacturing tank and terminal safety equipment such as hatches,
vent, pressure and vacuum relief valves and flame arrestors used
in the oil and gas, petrochemical, chemical and other industries.
Further, with the acquisition of Enardo, Emerson broadened its
capabilities to both the upstream and downstream markets.
With about $65 million in sales in 2012, Enardo is a market
leader in its segment with a strong brand name. Enardo was
previously a division of HMT, a leading provider of above ground
storage tank products and services based in Texas.
In Sep 2013, Emerson had acquired India-based private company
Virgo Valves to strengthen its Process Management division's
presence in the high potential oil & gas industry. With
complementing business line, geographic synergies and perfect
alignment of business strategy, these acquisitions are expected
to boost Emerson's Process Management revenues probably within
the first year itself.
The Process Management division of Emerson provides products
and technology as well as engineering and project management
services for precision measurement, control, and monitoring and
asset optimization services across industries. In fiscal 2012,
the segment contributed 28.9% of the total revenue (highest
across the company segments). In the latest reported quarter, the
company reported 3% increase in sales driven by strong
performance in the energy and chemical end markets.
Emerson currently carries a Zacks Rank #3 (Hold). Other stocks
in the industry that look promising at the moment are
Plug Power Inc
Quanta Services Inc
). Rexnord has a Zacks Rank #1 (Strong Buy), while Plug Power and
Quanta Services carry a Zacks Rank # 2 (Buy).
EMERSON ELEC CO (EMR): Free Stock Analysis
PLUG POWER INC (PLUG): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
REXNORD CORP (RXN): Free Stock Analysis
To read this article on Zacks.com click here.