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AMETEK (AME) Completes Sale of Reading Alloys to Kymera

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AMETEK, Inc. (AME - Free Report) recently completed the sale of the Reading Alloys business to Kymera International in an all-cash transaction valued at $250 million.

The company had announced the deal this January.

Reading Alloys, which was acquired by AMETEK in 2008, was part of its Electromechanical Group (EMG). It provides materials for mission critical applications in aerospace, defense, medical and industrial markets. The company's products include master alloys, thermal barrier coatings and titanium powders.

During the last reported quarter, the EMG segment generated $424.7 million of sales, which decreased 5% on a year-over-year basis. Nevertheless, the company’s operational performance within the segment was strong.

Industry experts view the deal as part of AMETEK’s strategy of focusing on other core areas.

AMETEK, Inc. Price and Consensus

 

Share Price Performance

A glimpse of the company’s price trend shows that the stock has had an impressive run on the bourses in the past year. AMETEK has lost 26.9% compared with the industry’s decline of 24.4% in the said period.

AMETEK is one of the leading manufacturers of electronic appliances and electromechanical devices. Of late, the company is riding on acquisition benefits. The Forza, Telular and Spectro Scientific buyouts are driving growth of the Electronic Instruments segment. Further, positive contributions from the Pacific Design Technologies acquisition are contributing to the Electromechanical segment’s sales growth. Notably, it is witnessing robust organic growth due to strong product pipeline.

We believe proper execution of core growth strategies including operational excellence, global market expansion, investments in product development and strategic acquisitions will continue to aid AMETEK’s growth.

Zacks Rank & Stocks to Consider

AMETEK currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. , eBay Inc. (EBAY - Free Report) and Atlassian Corp. (TEAM - Free Report) . While Stamps.com and eBay sport a Zacks Rank #1 (Strong Buy), Atlassian carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Stamps.com, Atlassian Corp. and eBay is currently projected at 15%, 22.3% and 11.3%, respectively.

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