Ingersoll Rand Inc. IR yesterday announced that it bought Montelimar, France-based Albin Pump SAS. The transaction value (which was kept under wraps) was financed with available cash.
Shares of Ingersoll gained 3.3% yesterday, ending the trading session at $36.21.
Albin Pump specializes in manufacturing electric peristaltic pumps. These pumps are used mainly in mining, chemical processing, food and beverage, industrial water and municipal water markets.
Discussion on Buyout
Notably, the addition of Albin Pump to Ingersoll’s portfolio will strengthen the company’s efforts to expand its offerings in the fluid management arena and enhance its technical capabilities too. Further, Albin Pump’s solid customer base and its presence in multiple end markets will prove to be a boon for Ingersoll.
Notably, the acquired positive displacement pumps (electrically driven) will strongly complement Ingersoll’s existing product brands including Milton Roy, ARO and others. Albin Pump will be integrated with Ingersoll’s Precision & Science Technologies segment.
The Precision & Science Technologies segment is engaged in making liquid and gas pumps for use in life sciences, lab and medical markets as well as doing and metering pumps for use in multiple industries. It generated revenues of $195.8 million in second-quarter 2020, representing 15.5% of Ingersoll’s total revenues generated in the period.
Zacks Rank, Price Performance and Estimate Trend
With a market capitalization of $14.6 billion, Ingersoll currently carries a Zacks Rank #5 (Strong Sell). The company is suffering a setback from the prevalent pandemic crisis and expects a slow recovery in the markets during the third quarter of 2020. High leverage and forex woes are its other concerns.
In the past three months, the stock has rallied 17.6% compared with the industry’s growth of 10.6%.
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Also, the Zacks Consensus Estimate for its 2020 earnings per share is pegged at $1.26 and the same for 2021 stands at $1.64, implying an increase of 20% and 11.6% each from the respective figures in the past 60 days. Further, the consensus estimate for third-quarter earnings is pegged at 30 cents, suggesting growth from 26 cents, which was 60 days ago.
Ingersoll Rand Inc. Price and Consensus
Ingersoll Rand Inc. price-consensus-chart | Ingersoll Rand Inc. Quote
Stocks to Consider
Three better-ranked stocks in the industry are Tennant Company TNC, Altra Industrial Motion Corp. AIMC and Graco Inc. GGG. While Tennant currently sports a Zacks Rank #1 (Strong Buy), both Altra Industrial and Graco carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these companies have improved for the current year. Further, earnings surprise for the last reported quarter was 380.00% for Tennant, 76.47% for Altra Industrial and 37.04% for Graco.
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