IDEX Acquires Aegis Flow Technologies - Analyst Blog

IDEX Corporation IEX, a diversified engineering products company, recently acquired Aegis Flow Technologies, a producer of valve products, for a cash consideration of about $26 million.
    
Aegis is an established player in engineering, manufacturing and marketing of specialty chemical processing valves. Its products enhance safety and streamline costs by achieving reduction in fugitive emissions and process downtime while cutting back annual maintenance and capital expenditures. Based in Geismar, LA, Aegis serves a wide range of industries like chemical, pharmaceutical, semiconductor and pulp/paper, and aggregates around $15 million of revenues annually.

Aegis will be integrated into IDEX's Fluid & Metering Technologies segment, wherein it will offer its deep technological expertise to the latter's Chemical, Food & Process platform.

Last week IDEX reported its first quarter 2014 results. IDEX posted a 21.5% year-over-year increase in net income, driven by robust growth in revenues. The quarterly earnings of 91 cents per share beat the Zacks Consensus estimate by 7 cents, registering a positive surprise of 8.33%.

Its Fluid & Metering Technologies segment recorded year-over-year sales growth of 6%, benefiting from higher volume and productivity initiatives. With applications in chemical processing and food and beverage industries, Aegis' acquisition will facilitate further expansion of IDEX's product portfolio in its Fluid & Metering Technologies segment.

Following the earnings release, the company has seen 10 positive estimate revisions in the past week, and its earnings consensus estimate for the current year has also moved up over the same time frame. IDEX has a robust operating model, leveraging inorganic growth strategies and driving organic growth by innovation across products and markets.

IDEX provides exclusive customized technology to various high-growth niche markets, and this deal is set to enhance its existing offerings with complementary technologies.

IDEX currently holds a Zacks Rank #2 (Buy). Other notable stocks in the industry include Gorman-Rupp Co. GRC, Middleby Corp. MIDD and Broadwind Energy, Inc. BWEN. While Gorman-Rupp and Middleby sport a Zacks Rank #1 (Strong Buy), Broadwind Energy carries a Zacks Rank #2.