Enpro (NPO) Boosts Product Portfolio With Advanced Micro Buyout
Enpro Inc. NPO has inked a deal to acquire Advanced Micro Instruments, Inc. (“AMI”) for $210 million in cash.
Headquartered in Costa Mesa, CA, AMI is engaged in providing highly engineered, application-specific analyzers and sensing technologies. The company primarily caters to midstream natural gas, industrial processing, biogas, food processing, cryogenics, wastewater, laboratory and aerospace markets.
Post completion of the acquisition, AMI will be a part of Enpro’s Sealing Technologies segment, which supports the safeguarding of critical environments. AMI’s analyzer and sensor portfolio will boost the Sealing Technologies segment’s portfolio of critical process technologies. This move marks a significant milestone for Enpro as the buyout will expand the company’s capabilities into compositional analysis, which is a thriving area in the Test & Measurement industry.
Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in early 2024. The company expects the buyout to be accretive to the Sealing Technologies segment’s revenue growth and profitability apart from NPO’s adjusted earnings per share.
Zacks Rank
Enpro currently carries a Zacks Rank #4 (Sell). The company has been witnessing weakness in the semiconductor, food & pharmaceutical, and commercial vehicle OEM markets. However, contributions from pricing actions and robust demand in nuclear markets are expected to provide some relief.
Shares of NPO have increased 46.2% compared with the industry’s 52.5% rise in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the same industry are discussed below:
Adeia Inc. ADEA presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ADEA delivered a trailing four-quarter average earnings surprise of 33.4%. In the past 60 days, the Zacks Consensus Estimate for Adeia’s 2023 earnings has increased 6.2%. The stock has risen 32.4% in the past year.
APi Group Corporation APG presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.9%.
The Zacks Consensus Estimate for APG’s 2023 earnings has increased 4.7% in the past 60 days. Shares of APi Group have jumped 84.9% in the past year.
Arm Holdings plc ARM currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 38.5%.
In the past 60 days, the Zacks Consensus Estimate for Arm Holdings’ 2023 earnings has improved 1.9%. The stock has risen 21.8% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report
Enpro Inc. (NPO) : Free Stock Analysis Report
APi Group Corporation (APG) : Free Stock Analysis Report
Adeia Inc. (ADEA) : Free Stock Analysis Report
