WESCO International, Inc.WCC recently announced the acquisition of Needham Electric Supply for an undisclosed amount.
Headquartered in Canton, MA, Needham Electric Supply is an electric distributor that caters to the commercial construction and lighting national account markets. The company generates annual sales of approximately $115 million from 24 locations across Massachusetts, New Hampshire and Vermont.
The Needham acquisition will enhance WESCO's electrical and construction business, in turn, expanding its market share. The acquisition is also expected to be accretive to the company's earnings by 4 cents per share in the first year of operation.
WESCO is quite active on the merger and acquisition front. In May 2014, the company acquired Hi-Line Utility Supply to enhance its utility products and service offerings. In March, the company took over Hazmasters Ltd. - a distributor of safety products - to strengthen its safety business in Canada.
Acquisitions will remain an important part of WESCO's growth strategy and boost the top line and the bottom line in the near term. Moreover, the company will augment its existing product lines and expand globally, thereby improving overall market position.
WESCO is one of the largest suppliers and distributors of electrical construction products in the U.S. The company's third-quarter adjusted earnings were up 28.5% sequentially. However, earnings declined 17.3% year over year due to persistent weakness in the industrial market and foreign exchange headwinds.
Currently, WESCO has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks are Avnet Inc. AVT , MaxLinear, Inc. MXL and Expedia Inc. EXPE . While Avnet and MaxLinear have a Zacks Rank #2 (Buy), Expedia sports a Zacks Rank #1 (Strong Buy).
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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.
