Lincoln Electric Acquires Easom to Lift Automation Capacity - Analyst Blog

Manufacturer and reseller of welding and cutting products, Lincoln Electric Holdings Inc. (LECO) announced that it has acquired Easom Automation Systems, Inc. in order to strengthen its position in automated welding and cutting. Financial terms of the transaction were not disclosed.

Based in Madison Heights, MI, Easom is a provider of automation systems as well as designer and builder of handling systems, including multi-zone weld systems and cells, robotic transfer units, conveyors, drives and positioning systems to heavy fabrication, aerospace sectors and automotive OEMs (Original equipment manufacturer).

The acquisition will provide Lincoln Electric with an opportunity to expand its automation capabilities and end sector reach. Easom's innovative solutions, patents and techniques will help Lincoln Electric to improve customers' operational efficiency and increase profitability.

Lincoln Electric has enhanced its product portfolio in many key growth areas through acquisitions. In Nov 2013, the company acquired an ownership interest in Burlington Automation Corporation and also entered into a definitive agreement to acquire Robolution GmbH. These deals will assist Lincoln Electric in expanding its geographic reach and also allow customers to increase productivity and improve quality.

In addition, Lincoln Electric will benefit from investment in strategic initiatives, which include an active acquisition program and development in manufacturing platforms. In July, Lincoln Electric invested in a new licensing agreement with the NanoSteel Company by leveraging the latter's technology in the alloy portfolio.

In North America, Lincoln Electric continues to drive sales force efficiency with new CRM tools, hardware and enhanced training. The company also remains focused on ramping up the greenfield automation business in Brazil.

Lincoln Electric currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same industry with favorable Zacks rank include Kennametal Inc. (KMT), ABB Ltd. (ABB) and ACCO Brands Corporation (ACCO). All these stocks carry a Zacks Rank #2 (Buy).

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