SPX Flow (FLOW) has agreed to buy Philadelphia Mixing Solutions. The process solutions company is to pay $65 million for the mixing solutions provider. The transaction should close in the 2Q 2021.
The all-cash transaction will result in the merger of two top mixing equipment brands. In addition, the acquisition should cement SPX Flow’s status as a pioneer in the provision of products and solutions that make the world safer and more sustainable.
Philadelphia Mixing Solutions employs about 150 employees and generated $50 million in revenues last year. It also comes with more than six decades of industry experience in mixing products.
The merger with SPX Flow will allow the company to become part of a global process solutions leader. It also plans to expand the solutions it offers and take advantage of economies of scale. (See SPX Flow stock analysis on TipRanks).
“The combination of these two great mixer businesses will create new opportunities for synergy and growth, while also broadening our portfolio of comprehensive mixing solutions for customers in the chemical, water & wastewater, petrochemical, pharmaceutical, and nutrition & health markets”, stated SPX Flow’s CEO, Marc Michael.
Barclay’s analyst Julian Mitchell expects most multi-industry companies, such as SPX Flow, to raise their full-year 2021 guidance when they report 1Q results.
Mitchel reiterated a Hold rating on the stock three weeks ago and raised his price target from $54 to $58, implying 16.5% downside potential to current levels.
Consensus on Wall Street is a Moderate Buy based on 3 Buys, 2 Holds, and 1 Sell. The average analyst price target of $71.83 implies 3.5% upside potential to current levels.
SPX Flow scores a strong 9 out of 10 on the TipRanks’ Smart Score rating tool, suggesting it is likely to outperform market expectations.