Markets
PH

Rexnord Acquires Tollok, Expands Growth Opportunities - Analyst Blog

A generic image of many stacks of coins
Credit: Shutterstock photo

Machinery company Rexnord Corporation ( RXN ) recently announced the acquisition of the Italy-based Tollok S.p.A. The acquired assets complement the company's existing product line, offering solid growth opportunities. The financial terms of the transaction have not been disclosed.

Tollok S.p.A, with an annual revenue generation capacity of €17 million, has a diversified customer base in the power generation as well as process and general industries. It provides shaft locking devices to control rotating shafts, manage torque transmission, and counteract shaft bending and vibration.

Rexnord, over time, had successfully leveraged its acquisitions by penetrating into unexplored markets, strengthening foothold in existing markets and expanding its product lines. In Apr 2015, Green Turtle was acquired with an aim to expand the company's Zurn business in Toronto, Ontario and Charlotte. In first-quarter fiscal 2015, acquisitions contributed roughly 3% to the company's revenue growth.

Rexnord is scheduled to release the second-quarter fiscal 2015 (ended Sep 2014) results on Nov 6, after the market closes. The Zacks Consensus Estimates for the quarter is currently pegged at 39 cents per share. Rexnord carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%, which makes prediction of a likely earnings beat difficult. The Zacks Consensus Estimate for fiscal 2015 and 2016 are at $1.61 and $1.89, representing year-over-year growth of 20.2% and 17.4%, respectively.

Rexnord presently has a market capitalization of $3 billion. Some better-ranked stocks in the machinery industry include AO Smith Corp. ( AOS ), CUI Global, Inc. ( CUI ) and Parker-Hannifin Corp. ( PH ). All these stocks hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

REXNORD CORP (RXN): Free Stock Analysis Report

PARKER HANNIFIN (PH): Free Stock Analysis Report

SMITH (AO) CORP (AOS): Free Stock Analysis Report

CUI GLOBAL INC (CUI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

PH CUI AOS RXN

Other Topics

Stocks