EnPro Industries Inc. (NPO) recently announced the acquisition of Hayward, CA-based ATDynamics, Inc. The transaction, in sync with the company’s portfolio realignment policy, will strengthen its aerodynamic products range. Financial terms of the deal were, however, not disclosed by the involved parties.
The acquired assets of ATDynamics, a privately held company specializing in aerodynamic products for the commercial trucking industry, will be integrated with EnPro Industries’ Stemco division. The added product-line will complement Stemco’s existing offerings, including high performance wheel-end, brake, suspension, and tire pressure management products, for the commercial vehicle market. Also, a team of highly experienced employees from ATDynamics will join EnPro Industries.
We believe the acquisition, while reflective of the company’s strong cash position, will also boost EnPro Industries’ growth opportunities. In Dec 2014, the company had acquired Fabrico, Inc. from Fabrico Holding Company LLC, an affiliate of Prudential Capital Partners III, L.P. The deal had added high-quality engineered products and solutions for the land-based turbine (“LBT”) industry to the company’s portfolio.
EnPro Industries is scheduled to release fourth-quarter 2014 results on Feb 20, 2015 before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 61 cents per share, while that for 2014 and 2015 stand at $2.35 and $2.93, respectively.
With a market capitalization of $1.5 billion, EnPro Industries currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include II-VI Inc. (IIVI), Kadant Inc. (KAI) and Pioneer Power Solutions, Inc. (PPSI). While II-VI sports a Zacks Rank #1 (Strong Buy), both Kadant and Pioneer Power Solutions carry a Zacks Rank #2 (Buy).
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