Zurn Water Solutions Corporation ZWS recently announced that it has acquired the Wade Drains product portfolio from McWane, Inc. The financial terms of the transaction have been kept under lock and key.
This is the first acquisition by Zurn Water since it began trading on the NYSE on October 5, 2021. Zurn Water is the new legal name of Rexnord Corporation after the company spun off the Process & Motion Control segment into the Regal Beloit Corporation has completed 4. (For information on the spin-off and other related events, please visit: Rexnord Trades as Zurn Water Post Regal Beloit Deal)
For the past two days of trading, Zurn Water’s shares lost 0.1%, ending the session yesterday at $ 37.74.
In the headlines
Wade Drains specializes in the manufacture of sanitary products for commercial purposes. It has a solid customer base in North America and a wide variety of products. Products offered include pressurized water drainage, hydrants, cleaning and access covers, funnels, catchers, roof drains, and others.
The company was founded in 1865.
With the addition of Wade Drains, Zurn Water is well positioned to take advantage of its expanded product offering, customer base, technical know-how and experienced team. The acquisition will improve Zurn Water’s portfolio of flow systems, manufacturing capabilities and sales base.
In the first three quarters of 2021, Zurn Water invested $ 3.4 million in acquisitions (less cash acquired). Profits from acquisitions / divestitures increased sales by 3% in the third quarter of 2021.
In particular, the previously acquired Hadrian increased sales in the Water Management segment by 9% in the third quarter compared to the previous year.
Zack’s rank, price history, and earnings estimate trend
With a market capitalization of US $ 4.6 billion, Zurn Water is currently Zacks # 5 (Strong Sell). Rising costs and expenses as well as possible transport delays could give cause for concern for Zurn Water in the coming quarters. Solid product offerings, demand, and assets acquired could help.
Last month, Zurn Water’s stock was up 5.7%, compared to the industry’s 5.1% growth.
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The Zacks Consensus estimate for Zurn Water’s earnings is set at 80 cents per share for 2021 and $ 1.09 for 2022, a 44.8% decrease and 3.8% growth from the corresponding numbers prior to Sept. Days. Earnings estimates for the fourth quarter of 2021 drop 68.8% to 10 cents per share.
Zurn Water Solutions Corporation price and consensus
Zurn Water Solutions Corporation Price Consensus Chart | Offered by Zurn Water Solutions Corporation
Shares to consider
Below are three better-rated stocks in the Zacks Industrial Products sector that are actively involved in buyout activity.
Helios Technologies, Inc. HLIO acquired the China-based Shenzhen Joyonway Electronics & Technology Co., Ltd. in October 2021. for electronic control systems and parts. Italy-based NEM Srl was acquired by Helios in July 2021 and BJN Technologies, LLC in January 2021. HLIO currently has a Zacks Rank # 1 (Strong Buy). You can see the full list of today’s Zacks # 1 Rank stocks here.
The Helios share has gained 28.4% in the past three months. The Zacks consensus estimate for revenue increased 7.9% for 2021 and 9.8% for 2022 over the past 30 days.
AO Smith Corporation AOS expanded its commercial and water heater offering with the acquisition of Canada-based Giant Factories, Inc. in October 2021. In July, the company acquired Master Water Conditioning Corporation. AOS currently has a Zacks Rank # 2.
In the last three months the AOS share has gained 23.5%. Additionally, the Zacks Consensus Estimate for AO Smith’s earnings is up 6.6% for 2021 and 9% for 2022 over the past 30 days.
Applied Industrial Technologies, Inc. AIT acquired Gibson in January 2021 and RR Floody in August 2021. The RR Floody buyout has strengthened its automation technology offering and increased its reach in the American Midwest. AIT currently has a Zacks Rank # 2.
Applied Industrial stocks are up 7.3% over the past three months. The Zacks consensus estimate for AIT’s revenue rose 1.9% for fiscal year 2022 (end of June 2022) and 2.2% for fiscal year 2023 (end of June 2023) last month.
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