In a bid to strengthen its Industrial Division, Alamo Group, Inc. (ALG - Free Report) recently announced that it has formed a definitive deal to purchase all outstanding capital shares of Morbark, LLC. The value of the deal, which is expected to conclude in the fourth quarter of this year, is worth $352 million, subject to customary closing conditions.
Based in Winn, MI, Morbark is a major manufacturer of equipment and aftermarket parts for several markets including forestry, biomass, land management and recycling. The company, which employs about 720 employees, has a strong foothold with its subsidiaries in Wooster, OH and in Roxton Falls, Quebec. Upon completion of the deal, it will be integrated with Alamo’s Industrial Division.
Alamo already has a strong global presence in high quality equipment business for infrastructure maintenance, agriculture and other application markets, and believes this buyout will enable it to further strengthen its market presence. As a matter of fact, the move will allow Alamo to expand and strengthen its range of vegetation maintenance equipment offerings in the market. In addition, the move is likely to bring in several operational synergies for the company.
Other Notable Inorganic Moves
In August 2019, the company closed the acquisition of the assets of the Dixie Chopper business, which will boost its offerings for the zero-turn mowing industry. Further, in March, the company completed the acquisition of Dutch Power Company B.V. — a manufacturer of various landscape and vegetation management machines and attachments. This buyout is expected to augment and expand Alamo’s product portfolio and presence in the European market.
In the past three months, the Zacks Rank #3 (Hold) company’s shares have rallied 23.5%, outperforming the industry’s average growth of 7.5%.
Stocks to Consider
Some better-ranked stocks from the Zacks Industrial Products sector are Cimpress N.V (CMPR - Free Report) , Chart Industries, Inc. (GTLS - Free Report) and Tetra Tech, Inc. (TTEK - Free Report) . While Cimpress sports a Zacks Rank #1 (Strong Buy), Chart Industries and Tetra Tech carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cimpress’ earnings surprise in the last reported quarter was 137.04%.
Chart Industries pulled off average positive earnings surprise of 13.87% in the trailing four quarters.
Tetra Tech delivered average earnings surprise of 8.72% in the trailing four quarters.
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