), an applied solutions company, recently acquired England based
private company FTL Seals Technology Ltd., which specializes in
custom made products for the oil & gas, marine markets and
power generation. The acquisition price of 24.0 million euros
(approximately $31.0 million), was paid in cash.
Constructed around 35 years ago, FTL Seals offers a wide range
of sealing and moulding products like hydraulic seals, mechanical
face seals, heavy duty seals, rotary shaft seals and precision
mouldings, to name only a few.
Subsequent to the acquisition, FTL Seals will become a part of
IDEX's Health and Science Technologies segment, where it will
operate with Precision Polymer Engineering, acquired by IDEX in
It is expected that both these businesses, Precision and FTL,
working together, will create substantial revenue and cost
synergies for IDEX. The new joint business will not only expand
IDEX's product portfolio but will also help gain market share in
Late last month, IDEX reported mixed fourth quarter 2012
results. The company's earnings of 69 cents per share beat the
Zacks Consensus Estimate of 67 cents by 3.0%, whereas revenue of
$490.8 million missed the Zacks Consensus Estimate of $492.0
million by 0.2%.
At the end of the quarter, IDEX had a strong balance sheet
with the option of utilizing the available cash for strategic
acquisitions. Organic growth for the company as estimated to be
low to a middle single digit.
IEX currently holds a Zacks Rank #3 (Hold). Other stocks worth
a look in the diversified machinery industry are
Altra Holdings Inc.
The Babcock & Wilcox Company
); both holding a Zacks Rank #1 (Strong Buy). Another stock
Gardner Denver Inc.
) holds a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
BABCOCK&WILCOX (BWC): Free Stock Analysis
GARDNER DENVER (GDI): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
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