Manufacturer and reseller of welding and cutting products,
Lincoln Electric Holdings Inc.
), announced that it has acquired an ownership interest in
Burlington Automation Corporation and agreed to buy Robolution
GmbH. Financial terms of the twin transactions were not
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Ontario, Canada-based Burlington Automation, a maker of 3D
robotic plasma cutting systems, serves the structural steel,
construction, oil and gas and general fabrication markets in
North America. Its main products are sold under the PythonX
Nowadays, application of robot-guided cutting operations mainly
assists the processing of three-dimensional workpieces. In
addition, the unique plasma technique, with its higher accuracy
and flexibility, improves efficiency. The technique is also
cost-effective and suitable for high quality processing.
Lincoln Electric will benefit from Burlington's proprietary
technology by enabling customers to increase productivity and
improve quality. The Burlington acquisition will aid the
expansion of Lincoln's portfolio of automated cutting and welding
process, along with strengthening of its automation strategy.
Additionally, this will support growth by lowering capital
investment and floor space.
On the other hand, the acquisition will help Burlington
Automation to continue designing leading manufacturing systems
together with providing better service to customers.
Lincoln Electric, which belongs to the machinery industry along
Flow International Corporation
), also entered into a definitive agreement to acquire Robolution
GmbH, a European provider of robotic arc welding systems. Based
outside of Frankfurt, Germany, Robolution serves a number of
automotive original equipment manufacturers and Tier 1 suppliers.
The Robolution acquisition will expand Lincoln Electric's
geographic reach in the automation business. Lincoln Electric
expects the acquisition to close by the end of this month.
Lincoln Electric reported an 8% year-on-year rise in its
third-quarter 2013 adjusted earnings to 86 cents per share. The
results also beat the Zacks Consensus Estimate of 84 cents. The
company's continued focus on costs reduction drove the results.
Lincoln Electric will continue to benefit from its acquisition
strategy, introduction of new products and long-term growth in
key global markets, as well as from recovery in the construction
The company did not provide any specific guidance for 2013 or
2014, but anticipates sluggishness in top line performance, given
its end-market exposure, ongoing economic policy uncertainty and
global growth forecast.
Lincoln Electric currently carries a short-term Zacks Rank #3