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IDEX (IEX) Completes Abel Pumps Buyout, Expands Presence

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IDEX Corporation (IEX - Free Report) recently completed the acquisition of Abel Pumps, L.P., and its affiliates from Hillenbrand, Inc. (HI - Free Report) . The buyout, which was earlier announced in January 2021, is valued at $103.5 million in cash. Notably, IDEX’s shares declined 0.6% yesterday to eventually close the trading session at $199.03.

Based in Büchen, Germany, Abel Pumps is engaged in design and manufacture of engineered reciprocating positive displacement pumps. The company is recognized for manufacturing diaphragm, solids handling, high pressure and marine pumps. Its products are utilized in various end markets, including power, mining, water, marine and wastewater.

Buyout Details

With the buyout, IDEX will be able to leverage Abel Pumps’ strong expertise in pump solutions, which will help it in further strengthening its position in the pump manufacturing industry. This apart, the acquisition will enable IDEX to expand its customer base along with strengthening its ability to solve customers’ complex fluids challenges. Notably, Abel Pumps is integrated into IDEX’s Fluid and Metering Technologies business segment.

Other Notable Buyouts

The company intends to solidify its product portfolio and leveraged business opportunities through the addition of assets. For instance, in 2019, IDEX added Velcora Holding AB with its Steridose and Roplan businesses to its portfolio. Also, the company completed the buyout of Flow Management Devices in February 2020, which has strengthened its product offerings to chemical manufacturers, refineries and pipeline operators. Acquired assets boosted the company’s sales by 1% in the fourth quarter of 2020.

Zacks Rank, Price Performance and Estimate Revisions

IDEX, with approximately $15.1 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is well poised to gain from a diversified business structure, solid product portfolio and execution abilities in the quarters ahead. Further, synergistic gains from buyouts might benefit it. However, weakness in energy market is likely to hurt its performance.

In the past three months, the company’s share price has increased 3.3% compared with the industry’s growth of 7.7%.



The Zacks Consensus Estimate for the company’s earnings is pegged at $5.92 for 2021, up 3% from the 60-day-ago figure. The consensus estimate for 2022 earnings is pegged at $6.49, up 3.2% over the same time frame.

Stocks to Consider

A couple of better-ranked stocks from the same space are EnPro Industries, Inc. (NPO - Free Report) and Graco Inc. (GGG - Free Report) . While EnPro sports a Zacks Rank #1 (Strong Buy), Graco carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

EnPro delivered a positive earnings surprise of 310.81%, on average, in the trailing four quarters.

Graco delivered a positive earnings surprise of 20.87%, on average, in the trailing four quarters.

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