Lincoln Electric Acquires Inovatech To Aid Cutting Solutions
Zacks Investment Research | Dec 04, 2018 04:53AM ET
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) has acquired Inovatech Engineering Corporation and its related assets. The buyout will boost Lincoln Electric’s automated cutting solutions and application expertise for structural steel applications. Financial terms of the deal were not disclosed.
Ontario, Canada-based Inovatech is a maker of advanced robotic plasma cutting solutions. The acquisition will primarily add to Lincoln Electric’s Harris Products Group’s performance. The Harris Products Group, which contributed around 10% to Lincoln Electric’s net sales in third-quarter 2018, is involved in global cutting, soldering and brazing businesses and retail business in the United States.
Notably, the Harris Products segment witnessed a tougher margin comparison in the second and third quarter of 2018. Also, lower commodity prices continue to dent margins. However, the Inovatech buyout will contribute to the segment’s results, despite a rise in costs and inflationary pressure. Thus, the acquisition is in sync with Lincoln Electric’s efforts to expand geographically, and achieve commercial and operational excellence.
Lincoln Electric Holdings, Inc. Price
industry it belongs to, over the past year. Its shares have depreciated around 5%, while the industry declined around 19%.
Zacks Rank & Stocks to Consider
Currently, Lincoln Electric carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include Enersys (NYSE:ENS) , CECO Environmental Corp. (NASDAQ:CECE) and Flowserve Corp. (NYSE:FLS) . All the three stocks carry a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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