Back to top

Image: Bigstock

AMETEK Acquires Spectro Scientific, Expands EIG Portfolio

Read MoreHide Full Article

AMETEK, Inc. (AME - Free Report) has acquired fluid analysis instrumentation and software provider, Spectro Scientific, for about $190 million.

Following the closure of the deal, Spectro Scientific will join AMETEK’s Electronic Instruments Group.

On a year-to-date basis, AMETEK’s shares have lost 1.5% compared with the industry’s decline of 3.7%.

More on the Headlines

Headquartered in Chelmsford, Spectro Scientific is a provider of both lab-based and onsite instrumentation, consumables and cloud-based software solutions for industrial applications. These solutions help customers to determine the condition of fluids in mission-critical equipment.The business generated approximately $50 million of annual sales.

The deal compliments the company’s existing EIG business. Spectro’s differentiated solutions will provide opportunities to Ametek for further expanding into varied growing end markets, including military and defense, and for use in industrial process, power generation, as well as transportation.

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 latest deal will expand sales in AMETEK’s EIG portfolio.

In the last reported quarter, EIG generated $742.04 million of sales from this segment, slightly down 0.3% sequentially but up 10.5% from the year-ago quarter. The benefits from various acquisitions drove year-over-year growth in this segment. Also, robust organic sales in the last reported quarter remained positive within the segment.

AMETEK Chairman and Chief Executive Officer, David A. Zapico said, “Spectro’s solution offering nicely complements our strategy to integrate instrumentation data into cloud-based software and analytics.”

AMETEK, Inc. Price and Consensus

 

AMETEK, Inc. Price and Consensus | AMETEK, Inc. Quote

Zacks Rank & Other Stocks to Consider

Currently, AMETEK carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include TripAdvisor, Inc. (TRIP - Free Report) , QuinStreet, Inc. (QNST - Free Report) and Stamps.com Inc. . While TripAdvisor sports a Zacks Rank #1 (Strong Buy), QuinStreet and Stamps.com both carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for TripAdvisor, QuinStreet and Stamps.com is currently pegged at 14.5%, 25% and 15%, respectively.

More Stock News: This Is Bigger than the iPhone!                  

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. 

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AMETEK, Inc. (AME) - free report >>

QuinStreet, Inc. (QNST) - free report >>

TripAdvisor, Inc. (TRIP) - free report >>

Published in