Colfax to Boost Howden Business on Industrial Air & Gas Buy - Analyst Blog
Resource from: Zacks By Zacks Equity Research Likes:182
May 20,2015
Colfax Corporation CFX recently announced that it has entered into a definitive agreement to acquire GE Oil & Gas’ Roots (TM) blowers and compressors business unit. The transaction value has been fixed at $185 million, payable fully in cash.
As revealed, Roots(TM) blowers and compressors business unit, better known as Industrial Air & Gas Technologies, is a well renowned supplier of blowers and compressors technologies. It serves a wide range of customers in the water treatment, chemical production, and power generation markets.
Colfax believes the acquisition of Roots will strengthen its Howden business globally by allowing deeper penetration into the end-markets served by Roots. Also, the company’s revenue generation capacity will increase, given that Roots generated approximately $155 million of revenues in 2014.
Pending fulfillment of certain conditions, Colfax anticipates the acquisition to close in third-quarter 2015.
Colfax has preferred meaningful acquisitions for expanding the scale of its business over time. Acquired assets contributed roughly 9.9% to the company’s revenue growth in first-quarter 2015. Going ahead, the company expects to reap incremental benefits from the buyouts.
The Zacks Consensus Estimate for Colfax Corporation is pegged at $2.08 for 2015 and $2.36 for 2016. These estimates represent year-over-year decline of 5.24% for 2015 and growth of 13.28% for 2016.
Colfax currently has a market capitalization of $2.8 billion and carries a Zacks Rank #3 (Hold). Better-ranked stocks in the machinery industry include RBC Bearings Inc. ROLL, The Middleby Corporation MIDD and Capstone Turbine Corp. CPST. While RBC Bearings sports a Zacks Rank #1 (Strong Buy), both Middleby Corporation and Capstone Turbine hold a Zacks Rank #2 (Buy).
(Zacks By Zacks Equity Research)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
