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AMETEK (AME) to Acquire MOCON, Expand Package Testing Market
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AMETEK, Inc. (AME - Free Report) announced that it has entered into a definitive agreement to buy instrumentation provider, MOCON, Inc. at $30 per share in cash or a total value of about $182 million.
The successful closing of the deal is contingent upon the satisfaction of customary closing conditions and applicable regulatory approvals. The transaction is expected to be completed in the late second or third quarter of calendar year 2017. Moreover, the deal represents a premium of 39% to MOCON’s closing share price on Apr 13, 2017.
Coming to share price performance, AMETEK underperformed the Zacks Electronic Testing Equipment industry in the last one year. It returned only 5.9% compared with the industry’s gain of 39%.
MOCON Deal Complements AMETEK’s Business
Headquartered in Minneapolis, MOCON provides laboratory and field gas analysis instrumentation to research laboratories, production facilities and quality control departments.
Its products and services that detect, measure and monitor gases and other chemical compounds are used for food and beverage, pharmaceutical, and industrial applications. The business generated $63 million of MOCON’s total revenue in 2016.
The deal will compliment Ametek’s existing gas analysis instrumentation business. MOCON’s products will provide opportunities to Ametek to further expand into the growing food and pharmaceutical package testing market.
Bottom Line
Located in Berwyn, PA, AMETEK is a leading manufacturer of electronic appliances and electromechanical devices.The company continues to reap benefits from the execution of its four core growth strategies of operational excellence, global market expansion, investments in product development and strategic acquisitions.
AMETEK’s acquisition pipeline remains robust with opportunities to further expand and strengthen its portfolio. The company believes that strong execution of its four core growth strategies of operational excellence, global market expansion, investments in new product development, and strategic acquisitions will remain important growth drivers.
AMETEK is expected to release its first-quarter 2017 earnings on May 2.
KLA-Tencor delivered a positive earnings surprise of 14%, on average, in the last four quarters.
Fortive Corporation delivered a positive earnings surprise of 6.11%, on average, in the trailing four quarters.
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AMETEK (AME) to Acquire MOCON, Expand Package Testing Market
AMETEK, Inc. (AME - Free Report) announced that it has entered into a definitive agreement to buy instrumentation provider, MOCON, Inc. at $30 per share in cash or a total value of about $182 million.
The successful closing of the deal is contingent upon the satisfaction of customary closing conditions and applicable regulatory approvals. The transaction is expected to be completed in the late second or third quarter of calendar year 2017. Moreover, the deal represents a premium of 39% to MOCON’s closing share price on Apr 13, 2017.
Coming to share price performance, AMETEK underperformed the Zacks Electronic Testing Equipment industry in the last one year. It returned only 5.9% compared with the industry’s gain of 39%.
MOCON Deal Complements AMETEK’s Business
Headquartered in Minneapolis, MOCON provides laboratory and field gas analysis instrumentation to research laboratories, production facilities and quality control departments.
Its products and services that detect, measure and monitor gases and other chemical compounds are used for food and beverage, pharmaceutical, and industrial applications. The business generated $63 million of MOCON’s total revenue in 2016.
The deal will compliment Ametek’s existing gas analysis instrumentation business. MOCON’s products will provide opportunities to Ametek to further expand into the growing food and pharmaceutical package testing market.
Bottom Line
Located in Berwyn, PA, AMETEK is a leading manufacturer of electronic appliances and electromechanical devices.The company continues to reap benefits from the execution of its four core growth strategies of operational excellence, global market expansion, investments in product development and strategic acquisitions.
AMETEK’s acquisition pipeline remains robust with opportunities to further expand and strengthen its portfolio. The company believes that strong execution of its four core growth strategies of operational excellence, global market expansion, investments in new product development, and strategic acquisitions will remain important growth drivers.
AMETEK is expected to release its first-quarter 2017 earnings on May 2.
AMTEK, Inc. Price and Consensus
AMTEK, Inc. Price and Consensus | AMTEK, Inc. Quote
Zacks Rank & Stocks to Consider
Currently, Ametek has a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the industry are KLA-Tencor (KLAC - Free Report) and Fortive Corporation (FTV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KLA-Tencor delivered a positive earnings surprise of 14%, on average, in the last four quarters.
Fortive Corporation delivered a positive earnings surprise of 6.11%, on average, in the trailing four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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