Helios Signs Deal to Acquire Hydraulic Solutions Provider NEM Srl

Global industrial technology company Helios Technologies (HLIO) has signed an agreement to acquire NEM Srl, a hydraulic solutions company, which provides handling, construction, industrial vehicle and agricultural solutions to its customers. Helios Technologies develops and manufactures hydraulic and electronic control solutions for diverse markets.

The terms of the deal have not been disclosed yet. The transaction is likely to close in the third quarter of 2021, subject to certain conditions.

CEO of Helios Technologies Josef Matosevic said, “This strategic acquisition demonstrates our continued commitment to hydraulics segment and growing our core platform. The acquisition will optimize Helios’s position to expand our geographic reach, particularly in electro-hydraulics, by growing our OEM business throughout the world. The move gives us more cartridge valve technology (CVT) manufacturing capability in Europe.” (See Helios stock analysis on TipRanks)

On May 11, Robert Baird analyst Mircea Dobre assigned a Buy rating to the stock with a price target of $84 (16.7% upside potential).

According to Dobre, the company’s solid operating results and new acquisitions enhance its health and wellness portfolio.

As of now, the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 1 Buy and 2 Holds.

The average analyst Helios price target of $81.67 implies 13.4% upside potential from current levels. Shares have gained 102.6% over the past year.

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