Earlier this week,
) acquired gas liquid separation solutions and detection solutions
manufacturer ERC from MH Capital Partners II, L.P. ("MH Capital").
Acquisition was completed at a cash consideration of nearly ¥1.65
ERC, with yearly sales and international consumer base of about
¥2.14 billion, produces state-of-the-art products used primarily in
life science, analytical instrumentation and clinical industries.
The company shall be incorporated in the Health and Science
Technologies (HST) segment of IDEX which would then proliferate the
segment to a much higher degree.
IDEX had acquired Precision Photonics Corporation previously for
nearly $20 million for the Optics and Photonics platform of the HST
segment. Thus, it can be inferred that such strategic acquisitions
made by management shall ameliorate the segment incipiently,
helping IDEX reach quite a formidable position in the health and
science market in the near future.
The company recently reported its first quarter financial
results of 2012. The HST segment performed brilliantly, recording
about a 35% annual rise in revenues, reaching a whopping $173.8
million in the quarter. It is lucid that such advancements made
shall escalate gains from this platform even more in the coming
However, the company should be wary of the fact that a proactive
stance on the acquisition front has been adopted by its competitors
too. During mid-April,
DXP Enterprises, Inc.
) completed the acquisitions of Pump & Power Equipment, Inc.,
Aledco, Inc. and Force Engineered Products, Inc.
The company currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating. We also maintain a long-term Neutral
recommendation on its stock.
DXP ENTERPRISES (DXPE): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
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