Gibraltar Buys Delta Separations For $50M To Boost Offerings
Zacks Investment Research | Feb 16, 2020 08:28PM ET
Gibraltar Industries, Inc. (NASDAQ:ROCK) has acquired California-based Delta Separations — a privately-held engineering and manufacturing company — for $50 million in cash.
Delta Separations is engaged in centrifugal ethanol-based extraction systems. It sells directly to cannabis, hemp, and biomass processors that are focused on the production of botanical oil extracts for a variety of consumer products. The acquired company generated $46 million revenues in 2019.
Gibraltar believes that the acquisition will expand offerings and enhance customer satisfaction. The acquisition is expected to be accretive in 2020.
Gibraltar’s Acquisition Strategy Bodes Well
Gibraltar has been benefiting from strategic initiatives that primarily focus on operational excellence, innovation, portfolio management and acquisitions. Acquisitions, which are a key part of Gibraltar’s transformation plan, contributed 2.5% to net sales growth of 6.8% year over year.
On Jan 19, 2020, the company announced the acquisition of Canada-based Thermo Energy Systems, which will enable it to penetrate into the biologically-grown organic food market. Again on Aug 30, 2019, it acquired Apeks Supercritical, which holds a leading position in extraction processing with a strong leadership team, patented technology and leading-edge clean extraction technology in the United States. The acquisitions strengthened Gibraltar’s position in the U. S. solar renewable energy market.
Our Take
Shares of Gibraltar have gained 9.8% in the year-to-date period compared with its Zacks Investment Research
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