In sync with the portfolio-transformation strategy, EnPro Industries, Inc. NPO recently announced the divesture of the Rome, GA-based brake business to MAT HD, LLC., a subsidiary of MAT Holdings, Inc. Notably, the financial terms of the transaction are still kept under wraps.
MAT Holdings is engaged in manufacturing, marketing, and distributing diversified products in several industries including automotive and power equipment. Notably, this Long Grove, IL-based company’s operations are spread across three continents — North America, Europe and Asia. Founded in 1984, MAT Holdings employs more than 15,000 people throughout the world.
As part of EnPro’s STEMCO business unit, the brake business is a producer of high-quality brake shoes, lined brake shoes, and wheel kits for medium and heavy-duty truck applications.
As a matter of fact, the divestment of the business will enable EnPro to focus more on core businesses. In addition, the divestment will allow MAT Holdings to strengthen its offerings in the heavy-duty product portfolio.
Other Inorganic Moves
A notable inorganic move by the company was the acquisition of LeanTeq Co., Ltd. this month. Notably, the acquired assets will be integrated with the Technetics division of its Sealing Products segment.
This buyout will help EnPro in strengthening Technetics’ operations by boosting its manufacturing capabilities, product offerings and technological knowhow, along with strengthening the aftermarket business.
This apart, the company completed the buyout of a privately-held company — The Aseptic Group — in July 2019. Notably, EnPro integrated the acquired assets with the Garlock division of its Sealing Products segment. The buyout is likely to boost Garlock’s operations by strengthening product offerings and manufacturing capabilities, and expanding in biopharmaceutical and pharmaceutical industries.
EnPro currently carries a Zacks Rank #3 (Hold). In the past three months, the stock has increased 6% against the industry’s decline of 1.9%.
Stocks to Consider
Some better-ranked stocks from the same space are Crawford United Corporation CRAWA, Chart Industries, Inc. GTLS and Graham Corporation GHM. While Crawford sports a Zacks Rank #1 (Strong Buy), Chart Industries and Graham carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Crawford delivered average positive earnings surprise of 10.08% in the trailing four quarters.
Chart Industries delivered average positive earnings surprise of 13.87% in the trailing four quarters.
Graham’s earnings surprise in the last reported quarter was 100.00%.
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