Altra Industrial Motion Corp. (AIMC), yesterday, announced the acquisition of Guardian Industries, Inc., a well recognized supplier of flywheel, motion control and general industrial couplings. The financial terms of the transaction were not disclosed. Positive reaction followed the announcement, with the company gaining 1.37% at the end of the day.
Guardian Industries, Inc. with employee strength of 47, generated revenues of approximately $10 million in 2013.
The acquired assets will compliment Altra Industrial Motion’s existing line of business and enable further expansion in energy, farm & agriculture and specialty machinery end markets. Excluding any acquisition-related costs, the transaction will be accretive to earnings in the range of 1−2 cents per share.
Acquisitions are Altra Industrial Motion’s favored mode for expansion of its geographical reach and product lines. Prior to the latest takeover, the company added Svendborg Brakes A/S and S.B. Patent Holding ApS, a manufacturer of premium quality caliper brakes, to its portfolio in Dec 2013.
Altra Industrial Motion is expected to release its second-quarter results on Jul 24. The Zacks Consensus Estimate is pegged at 49 cents per share for the quarter, and stands at $1.98 for 2014 and $2.32 for 2015. These estimates reflect year-over-year growth of 20.1% for the second quarter, 20.4% for 2014 and 17.3% for 2015. Earnings in the next five years are anticipated to grow by 17.8% versus 14.7% estimated for the industry.
Altra Industrial Motion presently has a market capitalization of $998.5 million and carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Blount International Inc. (BLT), EnPro Industries, Inc. (NPO) and Dover Corporation (DOV). While Blount International and EnPro Industries sport a Zacks Rank #1 (Strong Buy), Dover Corp. holds a Zacks Rank #2 (Buy).
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