Timken (TKR) Boosts Portfolio With Lagersmit Acquisition
The Timken Company TKR announced that it acquired Lagersmit — a manufacturer of highly engineered sealing solutions based in the Netherlands. The acquisition adds engineered sealing products to Timken’s portfolio. This move also strengthens the company’s presence in the attractive marine market.
Founded in 1856, Lagersmit serves top propulsion manufacturers, ship owners, pump manufacturers and other industrial customers worldwide who demand innovative sealing systems. It is estimated to generate $40 million in revenue. Lagersmit’s premium products are highly complementary to TKR’s existing portfolio.
TKR funded the deal with cash on hand and its existing revolving credit facility. Other terms of the transaction remain undisclosed.
The results of the acquired company will be included in Timken’s Industrial Motion segment. Notably, the Industrial Motion segment’s revenues rose 2.9% year over year to $367 million in third-quarter 2023. The upside was led by higher pricing, the benefits of acquisitions and a favorable currency translation, partially offset by lower volume. The segment’s adjusted EBITDA was $75.2 million in the third quarter of 2023 compared with $68 million in the third quarter of 2022.
Price Performance
In the past year, Timken’s shares have gained 14.9% compared with the industry’s 20% growth.
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Zacks Rank and Stocks to Consider
Timken currently carries a Zacks #4 Rank (Sell).
Some better-ranked stocks from the Industrial Products sector are Resideo Technologies, Inc. REZI, Applied Industrial Technologies AIT and A. O. Smith Corporation AOS.
REZI currently sports a Zacks Rank #1 (Strong Buy), and AIT and AOS carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Resideo Technologies’ 2023 earnings per share is pegged at $1.48. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. The company has a trailing four-quarter average earnings surprise of 5.7%. REZI shares have rallied 15.9% in a year.
Applied Industrial has an average trailing four-quarter earnings surprise of 15%. The Zacks Consensus Estimate for AIT’s 2023 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have moved up 4% in the past 60 days. The company’s shares have gained 27.2% in a year.
The Zacks Consensus Estimate for A. O. Smith’s 2023 earnings is pegged at $3.77 per share. The consensus estimate for 2023 earnings has moved 5% north in the past 60 days and suggests year-over-year growth of 20.1%. The company has a trailing four-quarter average earnings surprise of 14%. AOS shares have gained 29.4% in a year.
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A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Timken Company (The) (TKR) : Free Stock Analysis Report
Resideo Technologies, Inc. (REZI) : Free Stock Analysis Report
