Industrial goods manufacturer IDEX Corporation IEX recently announced the acquisition of CIDRA Precision Services, LLC for $19.5 million with an earn-out up to $5.5 million contingent on the achievement of its goals within a year.
CIDRA specializes in the design, manufacture and sale of microfluidic components. Operating in the life science, health and industrial markets, CIDRA has annual revenues of approximately $9 million. Post closing, CIDRA will form a part of IDEX’s Health & Science Technologies segment and operate in the Scientific Fluidics platform. The acquisition is a strategic move by IDEX as CIDRA’s market leading technology and product portfolio are a perfect fit with its microfluidic growth plans.
Acquisitions over time 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. The company intends to continue pursuing organic growth strategies as well as leverage inorganic growth opportunities through potentially lucrative acquisitions.
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 globe. 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 Omnitek Engineering Corp. OMTK, Luxfer Holdings PLC LXFR and Middleby Corp. MIDD, each carrying a Zacks Rank #2 (Buy).
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