Within a couple of weeks of reporting its fourth-quarter 2013
Luxfer Holdings PLC
) announced the acquisition of Vexxel Composites, LLC for an
undisclosed amount. The acquisition news sent the company's share
price spiraling up by 0.52% to $19.39 on Mar 24.
Vexxel Composites, founded in 2012, is a company that specializes
in manufacturing high-pressure composite cylinders, particularly
Type 4 (polymer-lined), for containing compressed natural gas
(CNG). The transaction is believed to compliment Luxfer Holdings'
gas cylinders business by powering it with capabilities to design
and launch a better range of larger-diameter Type 4 cylinders for
Luxfer Holdings' Gas Cylinders Division manufactures composite
and aluminum cylinders for high-pressure gas storage. Operations
are carried out in England, the U.S., France, Germany, Canada and
China. The business accounted for 45% of total revenue in 2013.
Vexxel Composites, under Luxfer Holdings' banner, will be known
as Luxfer Utah.
The acquisition is in sync with Luxfer Holdings' strategy to
expand its gas cylinder business. In conjunction with its
fourth-quarter results, the company had announced that its German
subsidiary, Luxfer Gas Cylinders, has won a contract to supply
bulk natural gas transportation modules to Sub 161, a
Below is provided a snapshot of Luxfer Holdings' recently
announced fourth-quarter 2013 results.
ALTRA HOLDINGS (AIMC): Free Stock Analysis
BROADWIND ENRGY (BWEN): Free Stock Analysis
KADANT INC (KAI): Free Stock Analysis Report
LUXFER HOLDINGS (LXFR): Free Stock Analysis
To read this article on Zacks.com click here.
Adjusted earnings per American Depositary Shares (ADS) were 40
cents in fourth-quarter 2013, down from 45 cents earned in the
year-ago quarter but above the Zacks Consensus Estimate of 37
cents. Revenues generated were $116.0 million, down 10.8% year
In the last 30 days, the Zacks Consensus Estimate of Luxfer
Holdings has decreased by 3.1% to $1.57 for 2014 while remained
stable at $1.90 for 2015. Despite weak bottom-line expectations
in the near term, earnings over the next 5 years are anticipated
to grow 10.0%.
Luxfer Holdings currently has a market capitalization of $520
million and carries a Zacks Rank #4 (Sell). Three better-ranked
stocks in the diversified machinery industry include
Altra Industrial Motion Corp.
Broadwind Energy, Inc.
). While Kadant holds a Zacks Rank #1 (Strong Buy), Altra
Industrial Motion and Broadwind Energy carry a Zacks Rank #2