Edwards Group Limited (EVAC) recently announced an increase in its third quarter 2013 revenue and net income guidance. The revision is the outcome of solid revenue growth — on the back of the company’s Semiconductor and Flat Panel revenues experienced in the quarter.
Revenue is now expected to range within £177-180 million as compared with the guidance range of £160-175 million provided during the second quarter 2013. Net income is anticipated to grow in excess of previously provided guidance range of £17-25 million.
In Aug 2013, Edwards Group entered into a merger agreement with Atlas Copco Group, whereby the company will be acquired by a subsidiary of Altas for roughly $10.50 per share in cash. The whole transaction has been valued at approximately $1.6 billion, including debt.
The per share merger consideration includes $9.25 of fixed cash payment to Edwards Group and the rest is contingent upon the company achieving its guidance for 2013. The merger is likely to consummate in the first quarter 2014.
Both the parties of the merger agreement have received a go ahead from their respective board of directors. The companies still await shareholder approval, antitrust clearance, and fulfilment of other customary closing conditions.
Edwards Group Limited is an industrial technology company engaged primarily in the manufacturing and selling of vacuum products and abatement systems. The company currently has a market capitalization of $1.1 billion. Other stocks to watch out for in the industry are Altra Holdings, Inc. (AIMC), DXP Enterprises, Inc. (DXPE) and Dover Corporation (DOV), each with a Zacks Rank #2 (Buy).