Rexnord Corporation (RXN), a renowned water management products manufacturer, announced the acquisition of Green Turtle, a wastewater pre-treatment solutions provider. Financial terms of the transaction have been kept under wraps. The company’s share price gained 0.34% on Apr 15.
The acquisition added North Carolina-based Green Turtle Technologies Ltd., Green Turtle Americas Ltd. and Filamat Composites Inc. (together known as Green Turtle) to Rexnord’s portfolio. Green Turtle, having annual sales of $18 million will be integrated with Rexnord’s commercial plumbing products provider, Zurn Industries, LLC, operating under the company’s Water Management platform.
Rexnord is optimistic about realizing synergistic benefits from the transaction. The company will gain easy access to Green Turtle’s commercial, institutional and industrial clients in Toronto, Ontario and Charlotte. Also, some well-known products like Green Turtle’s Proceptor and Retroceptor will be added to its kitty.
Acquisitions have helped Rexnord to enter unexplored markets, strengthen its foothold in existing markets and made the expansion of product lines easier. In the 9 months ended Dec 2013, Rexnord spent roughly $112.0 million on acquisitions, an increase from $21.1 million used in the comparable period of fiscal 2013.
The Zacks Consensus Estimate of Rexnord is currently pegged at $1.28 for fiscal 2014 and $1.65 for fiscal 2015, reflecting year-over-year growth of 37.6% and 28.9% respectively. Earnings are anticipated to rise 22.7% in the next 5 years.
Rexnord Corporation has a market capitalization of $2.6 billion and carries a Zacks Rank #4 (Sell). Other better-ranked stocks in the industry include AVT, Inc. (AVTC), Franklin Electric Co., Inc. (FELE) and Plug Power Inc. (PLUG), all of which hold a Zacks Rank #2 (Buy).
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