) recently acquired the assets of LWG Specialised Plumbing
Products from Australia-based Hills Holdings Limited. The
financial terms of the acquisition were not disclosed.
LWG Specialised Plumbing Products, formed roughly 40 years
ago, focuses mainly on plumbing products. The company was
acquired by Hills Holdings in Feb 2008, enabling it to gain
market share in Queensland and the Northern Territory. LWG
generates annual revenues of $14 million and has six warehouses
LWG provides plumbing solutions to the non-residential
construction market. The company distributes stainless steel
fixtures, tapware, back flow prevention devices, pressure
reducing valves and flushing systems.
LWG distributes Rexnord's Zurn brand and the two companies
have been associated with each other for the past two decades.
With LWG now becoming part of Rexnord, another subsidiary of
Rexnord, Zurn Industries, LLC, will get a significant boost with
respect to revenues, enabling it to penetrate further the
non-residential construction market. Zurn Industries deals in the
commercial, municipal and industrial markets, with its engineered
water solutions, including a diverse offering of plumbing
Rexnord has been attempting to gain a greater market share
across all its served markets. The LWG acquisition is Rexnord's
second in the past 10 days. Last month, Rexnord announced the
acquisition of the U.K.-based company, Micro Precision Gear
Technology, for an undisclosed amount. The specialty precision
gears manufactured by Micro Precision cater to the aerospace
industry. The acquisition is expected to widen Rexnord's reach in
the aerospace industry while leveraging Micro Precision's
The company is also focused on increasing its core sales in
the coming quarters. For fiscal second-quarter 2014 as well as
fiscal 2014 core sales are expected to grow in the range of 2% to
4%, over the comparable periods.
Rexnord currently carries a Zacks Rank #1 (Strong Buy). Other
stocks worth a watch in the industry are
Plug Power Inc.
AO Smith Corp.
). While Fabrinet carries a Zacks Rank #1 (Strong Buy), Plug
Power and AO Smith carry a Zacks Rank #2 (Buy).
SMITH (AO) CORP (AOS): Free Stock Analysis
FABRINET (FN): Free Stock Analysis Report
PLUG POWER INC (PLUG): Free Stock Analysis
REXNORD CORP (RXN): Free Stock Analysis
To read this article on Zacks.com click here.