), a diversified engineering products company, recently acquired
Aegis Flow Technologies, a producer of valve products, for a cash
consideration of about $26 million.
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Aegis is an established player in engineering, manufacturing and
marketing of specialty chemical processing valves. Its products
enhance safety and streamline costs by achieving reduction in
fugitive emissions and process downtime while cutting back annual
maintenance and capital expenditures. Based in Geismar, LA, Aegis
serves a wide range of industries like chemical, pharmaceutical,
semiconductor and pulp/paper, and aggregates around $15 million
of revenues annually.
Aegis will be integrated into IDEX's Fluid & Metering
Technologies segment, wherein it will offer its deep
technological expertise to the latter's Chemical, Food &
Last week IDEX reported its first quarter 2014 results. IDEX
posted a 21.5% year-over-year increase in net income, driven by
robust growth in revenues. The quarterly earnings of 91 cents per
share beat the Zacks Consensus estimate by 7 cents, registering a
positive surprise of 8.33%.
Its Fluid & Metering Technologies segment recorded
year-over-year sales growth of 6%, benefiting from higher volume
and productivity initiatives. With applications in chemical
processing and food and beverage industries, Aegis' acquisition
will facilitate further expansion of IDEX's product portfolio in
its Fluid & Metering Technologies segment.
Following the earnings release, the company has seen 10 positive
estimate revisions in the past week, and its earnings consensus
estimate for the current year has also moved up over the same
time frame. IDEX has a robust operating model, leveraging
inorganic growth strategies and driving organic growth by
innovation across products and markets.
IDEX provides exclusive customized technology to various
high-growth niche markets, and this deal is set to enhance its
existing offerings with complementary technologies.
IDEX currently holds a Zacks Rank #2 (Buy). Other notable stocks
in the industry include
Broadwind Energy, Inc.
). While Gorman-Rupp and Middleby sport a Zacks Rank #1 (Strong
Buy), Broadwind Energy carries a Zacks Rank #2.