), through its Augusta, GA based unit E-Z-GO, took over TUG
Technologies Corp., from Jacobson Partners, a private-equity firm
based in New York. This acquisition reflects Textron's steady
inorganic growth strategy.
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TUG based out of Kennesaw, GA manufactures ground support
equipment for airlines, air-freight companies, ground handlers,
government agencies and airports. Post acquisition, the company
will continue to manufacture its products at the Kennesaw
E-Z-GO makes golf cars, utility and personal transportation
vehicles, and ground support equipment. The TUG brand will join
E-Z-GO's Cushman, E-Z-GO and Bad Boy Buggies brands.
Management expects TUG to expand the product offering at Textron.
E-Z-GO already possesses a diversified product-line and the
addition of this aviation ground support equipment maker will
enhance its capability to serve customers more efficiently.
Indeed the aerospace and defense industry is a fiercely
competitive space, with big operators looking to capitalize on
every single opportunity to expand their market share and product
offerings. Textron's acquisition of TUG Technologies Corp. will
expand its operation in the aviation ground support equipment
In March this year the company also completed the acquisition of
Beech Holdings, LLC, the parent of Beechcraft Corporation, for
approximately $1.4 billion in cash. As a result of this
acquisition, the company formed a new segment called Textron
Aviation, combining its Cessna division with the newly acquired
Textron's investors will be curious to see how these acquisitions
bring added synergies to the company. It is worth noting that the
company missed the first quarter Zacks Consensus Estimate of 40
cents by 22.5%. For 2014, Textron expects earnings per share from
continuing operations in the range of $1.92-$2.12, taking into
consideration the Beechcraft acquisition. The Zacks Consensus
Estimate for the year is currently at $2.01 per share, at the mid
point of the guided range.
The stock currently carries a Zacks Rank #2 (Buy). Stocks to look
out for in this aerospace and defense space are
The Boeing Co.
Huntington Ingalls Industries, Inc.
). While Embraer holds a Zacks Rank #1 (Strong Buy), Boeing and
Huntington Ingalls carry a Zacks Rank #2 (Buy).