Manitex International, Inc. (MNTX) has completed its earlier announced acquisition of Sabre Manufacturing LLC, for $14 million. The acquisition will provide Manitex an opportunity to expand its offerings in the specialized equipment market and energy sector.
Knox, IN-based Sabre is a manufacturer of specialized trailer tanks for liquid and solid storage and containment solutions with a large installed base in North America. Its tank trailers are sold to specialist independent tank rental companies for a variety of end markets such as petrochemical, waste management and oil and gas drilling.
Sabre is expected to benefit from increased industrial activity, general construction and demand for energy. In addition, the acquisition will help Sabre to grow through the larger dealership network of Manitex, enhancing the marketing and sales of its products.
On the other hand, Manitex will gain from Sabre’s practical, convenient and economical techniques for liquid storage solutions and waste management. The acquisition will add diversity to Manitex’s product line and end markets and lead to an above-average upside. Moreover, it adds growth opportunities in the existing sales distribution network of Manitex.
The Sabre acquisition is in sync with Manitex’s commitment to innovative product development and opportunistic acquisitions. It was funded by $13 million cash and $1 million common stock. The acquisition is expected to be accretive to Manitex’s earnings in 2013.
Manitex expects a modest economic improvement in the U.S. and weakness to persist in Europe. The company believes energy sector remains a source of significant growth potential in both the short and long term. It expects to generate 50% of its sales from the energy area and the balance from general commercial markets.
Bridgeview, IL-based Manitex International is a leading provider of engineered lifting solutions including boom truck and rough terrain cranes, rough terrain forklifts, special mission oriented vehicles, container handling equipment and specialized engineered trailers.
Manitex currently retains a Zacks Rank #3 (Hold).
Other stocks in the same industry with favorable Zacks ranks are Gorman-Rupp Co. (GRC), Graham Corp. (GHM) and The Babcock & Wilcox Company (BWC). While Gorman-Rupp and Graham carry a Zacks Rank #1 (Strong Buy), Babcock & Wilcox holds a Zacks Rank #2 (Buy).
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