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ITT Boosts Product Portfolio With the Acquisition of kSARIA
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ITT Inc. (ITT - Free Report) recently completed the acquisition of kSARIA Parent, Inc. (kSARIA). The transaction, valued at approximately $460 million, will be paid using a new term loan and the company’s current cash. This deal was announced in August 2024.
Based in Hudson, NH, kSARIA is engaged in designing and manufacturing high-quality cable management and protection solutions. The company also provides comprehensive turnkey installation services for fiber optic and electrical cable systems, specifically tailored for military and aerospace applications.
Acquisition Rationale of ITT
This acquisition is in sync with ITT’s policy of acquiring businesses to strengthen its business and expand its product portfolio and market share. The inclusion of kSARIA’s highly engineered cable assemblies for avionics, sensors, communications and networking applications will bolster its existing connector portfolio. By incorporating K-SARIA’s well-established client base, ITT will be able to penetrate and diversify its offerings in key markets.
kSARIA will be incorporated into the Connect & Control Technologies (CCT) segment.
Other Notable Acquisitions of ITT
The company acquired privately held Svanehøj Group A/S (Svanehøj) in January 2024 for approximately $395 million. The acquisition expanded its offerings, particularly in the marine pumps market. The acquisition of Micro-Mode Products, Inc. in May 2023 expanded ITT's product portfolio and customer base, specifically for long-term defense programs. It also grew its North America connectors platform, thus enhancing the CCT segment.
ITT acquired Clippard Instrument Laboratories’ product lines in August 2022. The latter’s stainless steel, brass and aluminum cylinders and volume tanks expanded its compact automation product range targeting the robotics, packaging and automation end markets. The acquisitions of Svanehøj and Micro-Mode contributed 4% to the company’s sales growth in second-quarter 2024.
ITT’s Zacks Rank and Price Performance
ITT currently carries a Zacks Rank #3 (Hold). In the past year, the company’s shares gained 37% compared with the industry’s 0.4% growth.
Image Source: Zacks Investment Research
ITT is benefiting from strength across its segments and strong operational execution. Growth in pump projects in the energy market is aiding the Industrial Process segment. Increasing component and connector sales within the aerospace and defense markets are supporting the CCT segment. The company’s investments in innovation are likely to support continued growth.
Continued increases in raw material and labor costs are likely to hurt its profitability if demand weakens in any quarter. Increasing general and administrative expenses are worrisome as well. Also, given its international presence, foreign currency headwinds and exposure to troubled geographies are concerns.
Federal Signal delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the Zacks Consensus Estimate for FSS’ 2024 earnings has increased 5.2%.
Vector Group Ltd. (VGR - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 15.4%.
In the past 60 days, the Zacks Consensus Estimate for VGR’s 2024 earnings has increased 5.2%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 earnings has increased 1.2%.
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ITT Boosts Product Portfolio With the Acquisition of kSARIA
ITT Inc. (ITT - Free Report) recently completed the acquisition of kSARIA Parent, Inc. (kSARIA). The transaction, valued at approximately $460 million, will be paid using a new term loan and the company’s current cash. This deal was announced in August 2024.
Based in Hudson, NH, kSARIA is engaged in designing and manufacturing high-quality cable management and protection solutions. The company also provides comprehensive turnkey installation services for fiber optic and electrical cable systems, specifically tailored for military and aerospace applications.
Acquisition Rationale of ITT
This acquisition is in sync with ITT’s policy of acquiring businesses to strengthen its business and expand its product portfolio and market share. The inclusion of kSARIA’s highly engineered cable assemblies for avionics, sensors, communications and networking applications will bolster its existing connector portfolio. By incorporating K-SARIA’s well-established client base, ITT will be able to penetrate and diversify its offerings in key markets.
kSARIA will be incorporated into the Connect & Control Technologies (CCT) segment.
Other Notable Acquisitions of ITT
The company acquired privately held Svanehøj Group A/S (Svanehøj) in January 2024 for approximately $395 million. The acquisition expanded its offerings, particularly in the marine pumps market. The acquisition of Micro-Mode Products, Inc. in May 2023 expanded ITT's product portfolio and customer base, specifically for long-term defense programs. It also grew its North America connectors platform, thus enhancing the CCT segment.
ITT acquired Clippard Instrument Laboratories’ product lines in August 2022. The latter’s stainless steel, brass and aluminum cylinders and volume tanks expanded its compact automation product range targeting the robotics, packaging and automation end markets. The acquisitions of Svanehøj and Micro-Mode contributed 4% to the company’s sales growth in second-quarter 2024.
ITT’s Zacks Rank and Price Performance
ITT currently carries a Zacks Rank #3 (Hold). In the past year, the company’s shares gained 37% compared with the industry’s 0.4% growth.
Image Source: Zacks Investment Research
ITT is benefiting from strength across its segments and strong operational execution. Growth in pump projects in the energy market is aiding the Industrial Process segment. Increasing component and connector sales within the aerospace and defense markets are supporting the CCT segment. The company’s investments in innovation are likely to support continued growth.
Continued increases in raw material and labor costs are likely to hurt its profitability if demand weakens in any quarter. Increasing general and administrative expenses are worrisome as well. Also, given its international presence, foreign currency headwinds and exposure to troubled geographies are concerns.
Stocks to Consider
Some better-ranked companies are discussed below.
Federal Signal Corporation (FSS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Federal Signal delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the Zacks Consensus Estimate for FSS’ 2024 earnings has increased 5.2%.
Vector Group Ltd. (VGR - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 15.4%.
In the past 60 days, the Zacks Consensus Estimate for VGR’s 2024 earnings has increased 5.2%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 earnings has increased 1.2%.