Welding, cutting and brazing products provider, Lincoln Electric Holdings, announced the acquisition of Zeman Bauelemente which is a division of Zeman Group. Financial details of the transaction were not disclosed.
Lincoln Electric’s (LECO) Chairman, President and Chief Executive Officer, Christopher L. Mapes said, “We are excited to welcome the Zeman Bauelemente team to Lincoln Electric and integrate their unique offering into our industry-leading automation portfolio.”
Mapes further said, “The combination of the SBA and our PythonX solutions offers structural steel fabricators the advantage of greater productivity and capacity to meet the growing demand from structural steel and infrastructure projects.” (See Lincoln Electric stock analysis on TipRanks)
Zeman Bauelemente’s robotic assembly and arc welding systems automate the tacking and welding of steel beams. This acquisition expands Lincoln’s annual automation sales by about 10% while also increasing its international automation capabilities.
Recently, Oppenheimer analyst Bryan Blair reiterated a Hold rating on the stock without assigning it a price target.
Commenting on the company’s 4Q performance, Blair said, “All three segments outperformed in the quater, highlighted by strong Americas margin (contributing $0.11 to upside variance). Overall demand trends continued to improve during 4Q (moderating organic sales decline to -5.6% y/y), with approximately 50% of revenue exposed to growing end markets.”
Turning to rest of the Street, the stock has a Hold consensus rating alongside an average analyst price target of $127.50 (3% upside potential) based on 1 Buy, 1 Hold and 1 Sell. Shares have gained about 78.2% over the past year.
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