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Thermon Boosts Portfolio With F.A.T.I. Buyout: Will Stock Gain?
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Thermon Group Holdings, Inc. (THR - Free Report) has acquired Italy-based Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. ("F.A.T.I."), aiming to expand its product range and geographic presence. This move reinforces Thermon’s position to better address the rising global demand for electrification and decarbonization solutions. The acquisition, valued at €12.5 million, was funded using available cash reserves, and it is subject to customary adjustments.
Based in Milan, Italy, F.A.T.I. is a prominent designer and manufacturer of electrical heaters and heating systems. Its portfolio features technologically advanced and reliable solutions used by companies across diverse industrial sectors, including oil and gas, pharmaceuticals, renewable energy, nuclear and heating, ventilation, and air conditioning (HVAC) in more than 30 countries worldwide. For the calendar year ending Dec. 31, 2023, F.A.T.I. reported revenues of more than €12 million.
Integrating F.A.T.I.'s manufacturing facility in Italy significantly strengthens Thermon’s global production capabilities. F.A.T.I.'s extensive European certifications and customer approvals will expedite Thermon’s entry into expanding markets in Europe and Asia.
F.A.T.I. highlighted this partnership as a pivotal milestone, enabling the company to leverage Thermon Business System technology and Thermon’s global presence to better meet customer needs worldwide.
Thermon Aims to Gain From Portfolio Expansion & Acquisitions
Thermon is engaged in providing engineered thermal solutions, known as heat tracing, for process industries, including energy, chemical processing and power generation.
The rising demand among industrial clients to electrify their equipment and minimize carbon footprint offers a significant opportunity for the company to utilize its expertise in heat transfer engineering solutions. According to Precedence Research, the global electrification market is anticipated to reach around $172.9 billion by 2032 at a compound annual growth rate (CAGR) of 8.91% from 2023 to 2032. The company is striving to gain a larger share of the market through inorganic and organic growth strategies.
Recently, Thermon launched the Genesis Network, a platform designed to enhance the efficiency and safety of monitoring and maintaining heating systems by integrating software, analytics, hardware and specialized maintenance services. The uptake of Genesis Network technology is steadily increasing.
The company has also been active on the acquisitions front. On Jan. 2, 2024, Thermon further strengthened its portfolio with the acquisition of Vapor Power International, LLC and its affiliates, a leading provider of high-quality industrial process heating solutions, including electric, electrode and gas-fired boilers. For the first quarter of fiscal 2025, the company reported revenues of $115.1 million, representing a 7.7% increase year over year attributed to the Vapor Power acquisition revenues of $13.9 million.
These acquisitions are poised to strengthen the company’s portfolio and will help drive its top line by tapping into the emerging global electrification market, propelling the stock upward.
THR’s Zacks Rank & Stock Price Performance
THR currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 6.3% in the past year compared with the sub-industry's growth of 24.3%.
Seagate Technology delivered an earnings surprise of 80.9%, on average, in three of the trailing four quarters. In the last reported quarter, STX pulled off an earnings surprise of 40%. The Zacks Consensus Estimate for its earnings has increased 18% to $7.41 in the past 60 days.
OptimizeRx delivered an earnings surprise of 159.5%, on average, in three of the trailing four quarters. In the last reported quarter, OPRX pulled off an earnings surprise of 128.6%. The Zacks Consensus Estimate for its earnings has increased 38.5% to 36 cents in the past 60 days.
SS&C Technologies Holdings delivered an earnings surprise of 3.1%, on average, in the trailing four quarters. In the last reported quarter, SSNC pulled off an earnings surprise of 4.9%. The Zacks Consensus Estimate for its earnings is pegged at $5.18.
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Thermon Boosts Portfolio With F.A.T.I. Buyout: Will Stock Gain?
Thermon Group Holdings, Inc. (THR - Free Report) has acquired Italy-based Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. ("F.A.T.I."), aiming to expand its product range and geographic presence. This move reinforces Thermon’s position to better address the rising global demand for electrification and decarbonization solutions. The acquisition, valued at €12.5 million, was funded using available cash reserves, and it is subject to customary adjustments.
Based in Milan, Italy, F.A.T.I. is a prominent designer and manufacturer of electrical heaters and heating systems. Its portfolio features technologically advanced and reliable solutions used by companies across diverse industrial sectors, including oil and gas, pharmaceuticals, renewable energy, nuclear and heating, ventilation, and air conditioning (HVAC) in more than 30 countries worldwide. For the calendar year ending Dec. 31, 2023, F.A.T.I. reported revenues of more than €12 million.
Integrating F.A.T.I.'s manufacturing facility in Italy significantly strengthens Thermon’s global production capabilities. F.A.T.I.'s extensive European certifications and customer approvals will expedite Thermon’s entry into expanding markets in Europe and Asia.
F.A.T.I. highlighted this partnership as a pivotal milestone, enabling the company to leverage Thermon Business System technology and Thermon’s global presence to better meet customer needs worldwide.
Thermon Aims to Gain From Portfolio Expansion & Acquisitions
Thermon is engaged in providing engineered thermal solutions, known as heat tracing, for process industries, including energy, chemical processing and power generation.
The rising demand among industrial clients to electrify their equipment and minimize carbon footprint offers a significant opportunity for the company to utilize its expertise in heat transfer engineering solutions. According to Precedence Research, the global electrification market is anticipated to reach around $172.9 billion by 2032 at a compound annual growth rate (CAGR) of 8.91% from 2023 to 2032. The company is striving to gain a larger share of the market through inorganic and organic growth strategies.
Thermon Group Holdings, Inc. Price and Consensus
Thermon Group Holdings, Inc. price-consensus-chart | Thermon Group Holdings, Inc. Quote
Recently, Thermon launched the Genesis Network, a platform designed to enhance the efficiency and safety of monitoring and maintaining heating systems by integrating software, analytics, hardware and specialized maintenance services. The uptake of Genesis Network technology is steadily increasing.
The company has also been active on the acquisitions front. On Jan. 2, 2024, Thermon further strengthened its portfolio with the acquisition of Vapor Power International, LLC and its affiliates, a leading provider of high-quality industrial process heating solutions, including electric, electrode and gas-fired boilers. For the first quarter of fiscal 2025, the company reported revenues of $115.1 million, representing a 7.7% increase year over year attributed to the Vapor Power acquisition revenues of $13.9 million.
These acquisitions are poised to strengthen the company’s portfolio and will help drive its top line by tapping into the emerging global electrification market, propelling the stock upward.
THR’s Zacks Rank & Stock Price Performance
THR currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 6.3% in the past year compared with the sub-industry's growth of 24.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Seagate Technology Holdings plc (STX - Free Report) , OptimizeRx Corporation (OPRX - Free Report) and SS&C Technologies Holdings, Inc. (SSNC - Free Report) . Both STX & OPRX presently sport a Zacks Rank #1 (Strong Buy), whereas SSNC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Seagate Technology delivered an earnings surprise of 80.9%, on average, in three of the trailing four quarters. In the last reported quarter, STX pulled off an earnings surprise of 40%. The Zacks Consensus Estimate for its earnings has increased 18% to $7.41 in the past 60 days.
OptimizeRx delivered an earnings surprise of 159.5%, on average, in three of the trailing four quarters. In the last reported quarter, OPRX pulled off an earnings surprise of 128.6%. The Zacks Consensus Estimate for its earnings has increased 38.5% to 36 cents in the past 60 days.
SS&C Technologies Holdings delivered an earnings surprise of 3.1%, on average, in the trailing four quarters. In the last reported quarter, SSNC pulled off an earnings surprise of 4.9%. The Zacks Consensus Estimate for its earnings is pegged at $5.18.