Industrial goods manufacturer IDEX Corporation IEX recently completed the acquisition of Novotema, SpA for approximately €57 million cash. The acquisition is the third of its kind and will boost the Sealing Solutions group of IDEX.
Located in Villango, Italy, Novotema designs and manufactures specialty sealing solutions that are widely used in the building products, gas control, transportation, industrial and water markets. The acquisition is a strategic fit for IDEX and is likely to be accretive with immediate effect.
Acquisitions have been IDEX’s most favored mode for penetrating unexplored markets. These acquisitions expand its geographic reach, fill technology gaps and strengthen foothold in the existing markets while expanding its product lines. IDEX’s products are sold in various niche markets to a wide range of industries throughout the world. The company also aims to increase its market exposure and improve sales mix by continually developing new products.
In order to better serve its customers, IDEX has sharpened its focus on the market segments that offer the greatest opportunity for long-term growth and on the critical few customers that will drive that growth. The company has consolidated similar product lines and has built definite product-line strategies to drive growth and profitability. Moving forward, the company is diligently focusing on developing talented global teams that are committed to IDEX Operating Model for an effective execution of its operational plans.
IDEX manufactures a wide array of pumps, flow meters and other fluidics systems and components and engineered products for customers in different markets around the world. The company is a world leader in fluid-handling technologies for positive displacement pumps, dispensing equipment for color formulation, and other highly engineered products, including fire suppression equipment, rescue tools, and stainless steel custom banding.
IDEX presently has a Zacks Rank #3 (Hold). Other companies in the industry that are worth considering include EnPro Industries, Inc. NPO, Luxfer Holdings PLC LXFR and Middleby Corp. MIDD, each carrying a Zacks Rank #2 (Buy).
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