In order to expand across Europe and Asia and improve its product portfolio, CLARCOR Inc. (CLC) recently acquired the Bekaert Advanced Filtration business which is engaged in the same line of business as its subsidiary Purolator EFP. CLARCOR bought this business from NV Bekaert SA for about $8 million. However, the acquisition is not expected to have any material impact on CLARCOR’s 2014 earnings.
The business, renamed Purolator Advanced Filtration, is expected to record sales of approximately $20 million in 2013. The transaction also includes a supply contract under which the combined business can continue to purchase Bekipor metal fiber filtration media from Bekaert.
Bekaert is a world market leader in steel wire transformation and coatings and is well recognized for its engineering capabilities and premium product quality. The acquisition is expected to expand the technical capabilities of Purolator EFP and extend its global footprint with improved product offerings.
On the other hand, Bekaert will focus on its strength of providing advanced metal filtration media. The transaction, therefore, is a win–win situation for both companies.
Based in Franklin, TN, CLARCOR is a diversified marketer and manufacturer of mobile, industrial and environmental filtration products and consumer and industrial packaging products sold in domestic and international markets.
CLARCOR currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look in the industry include Hutchison Whampoa Ltd (HUWHY), ITT Corp. (ITT) and Raven Industries Inc (RAVN), each carrying a Zacks Rank #2 (Buy).
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