ETN Eaton Corp New

Earlier this week, IDEX Corporation (IEX) announced that it has completed the acquisition of Precision Photonics Corporation (PPC). A cash consideration of $20 million was paid for completing the transaction by IDEX.

PPC, established in 2000, is an optical components and coatings manufacturer, primarily catering to supporting research activities, electronic applications and various areas of the telecommunication industry. The primary intent of the acquisition was ossifying IDEX’s Optics and Photonics platform, which is a part of its Health and Science Technologies segment.

The Optics and Photonics platform is relatively new for the company, formed only in the beginning of this year. PPC shall now join the three business units of this platform: – AT Films, CVI Melles Griot and Semrock; acquisitions of which were completed by June, 2011 by IDEX.

It is noteworthy that Health and Science Technologies, the segment Optics and Photonics pertain to, is an incipiently growing part of the company. In 2011, this segment reported sales of nearly $622.3 million, surging about 47.4% annually. Hence, we can be prescient of an even better performance by this segment in 2012 with the recent trend of improvements that has become a singular characteristic of the segment. 

In 2011, Barnes Group, Inc. (B) invested approximately $3.5 million in the acquisition of hydro-pneumatic suspensions manufacturer, Curtiss-Wright Antriebstechnik Gmbh. Also, on February 20, 2012, Eaton Corporation (ETN) announced its decision to acquire Polimer Kaucuk Sanayi ve Pazarlama A.S. to bolster its hydraulics segment. Hence, IDEX should remain wary of similar moves made by its peers in the industry.

The company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We also maintain a long-term ‘Neutral’ recommendation on the stock.

 
BARNES GRP (B): Free Stock Analysis Report
 
EATON CORP (ETN): Free Stock Analysis Report
 
IDEX CORP (IEX): Free Stock Analysis Report
 
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