Amphenol (APH) Set to Acquire Casco Automotive for $450M

Diversified electronics manufacturer Amphenol Corporation APH recently inked a definitive agreement to acquire the Casco Automotive Group (CASCO) for about $450 million in order to augment its presence in the automotive market. The transaction is likely to be completed by the end of the current financial year, subject to the mandatory closing conditions and regulatory approvals.

Headquartered in Bridgeport, CT, with facilities in the Americas, Europe and Asia, Casco Automotive is one of the leading suppliers of highly engineered data connectivity, power, charging and sensor products in the automotive market. The company has over 70 years of experience in sensor and module development. These world-class sensors monitor events around them, transmit information and contribute to the automatic control of various vehicle functions for greater driving pleasure and safety.  

Amphenol is likely to leverage on Casco Automotive's complementary product offerings to strengthen its position in the automotive market that is likely to witness healthy growth with a broad proliferation of electronic applications. The acquisition is expected to be accretive from the very first year of its operation.

Moving forward, Amphenol is bullish about its revenue and earnings expectations in the forthcoming quarters despite the uncertainties prevailing in the global economy. The ongoing revolution in electronics further enables the company to capitalize on these opportunities and strengthen its position in the market. The diversification in end markets with a consistent focus on technology innovation and customer support through all phases of the economic cycle further enables Amphenol to mitigate its operating risks. We also remain bullish on the stock due to its sustained drive for geographic and market expansion in order to reach out to newer customers and offer newer applications.

Amphenol currently has a Zacks Rank #2 (Buy). Other promising stocks in the industry include InvenSense, Inc. INVN, OSI Systems, Inc. OSIS and Universal Display Corp. OLED, each carrying the same Zacks Rank as Amphenol.