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Fujifilm (FUJIY) to Acquire Wako, Boost Inorganic Growth

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FUJIFILM Holdings Corporation (FUJIY - Free Report) recently declared that it would be acquiring the renowned reagent manufacturer – Wako Pure Chemical Industries, Ltd. (Wako) – from Takeda Pharmaceutical Company Limited. The acquisition would take place by a tender offer of roughly 154.7 billion Japanese Yen of Wako shares held by Takeda.

Over the last three months, Fujifilm’s shares recorded a return of 2.65% – outperforming 1.82% returns provided by the Zacks categorized Computer and Technology sector. However, the Zacks Rank #4 (Sell) stock failed to exceed the 16.48% return provided by the Zacks categorized Semiconductor Equipment Manufacturing -Photomask industry.

However, the company is poised to grow on the back of innovations, meaningful acquisitions and its ongoing VISION 2016 management program.

Wako Acquisition Details

As of Dec 15, 2016, Takeda owned 71.2% shares of the popular reagent manufacturer, Wako. The tender offer, through which Fujifilm is acquiring Wako, is planned to commence on Feb 27, 2017. It is currently subject to anti-trust filing procedures and certain other closing formalities.

Through the buyout of Wako, Fujifilm would be able to provide more competitive products and advanced technologies to its customers. Especially, this transaction would reinforce Fujifilm’s healthcare business in the near term.

Stocks to Consider

Some better-ranked stocks within the industry include Applied Optoelectronics, Inc. AAOI, Advanced Energy Industries, Inc. (AEIS - Free Report) and Applied Materials, Inc. (AMAT - Free Report) . All the three stocks currently boast a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Optoelectronics, Inc. has an average positive earnings surprise of 106.74% for the last four quarters.

Advanced Energy Industries, Inc. has an average positive earnings surprise of 12.31% for the trailing four quarters.

Applied Materials, Inc.’s average positive earnings surprise is 4.54% for the trailing four quarters.

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