IDEX Acquires ThinXXS To Boost Scientific Fluidics Business

Industrial goods manufacturer IDEX Corporation (NYSE:IEX) recently inked a definitive agreement to acquire German firm — thinXXS Microtechnology AG — for an undisclosed amount. Post acquisition, thinXXS will form an integral part of the Health and Science Technologies segment of IDEX and will strengthen its presence in the global life science and veterinary markets with world-class products and solutions.

Located in Zweibrücken, Germany, thinXXS is a premier manufacturer of disposable microfluidic components for the point of care, veterinary and life science markets. It also develops various customer-specific solutions for applications in immunology, clinical chemistry, DNA analytic or cell-based research.

The acquisition is a strategic fit for IDEX’s core optics and scientific fluidics product portfolio that serves life science customers. The deal is the second of its kind in this space and strengthens the market position of the company as an undisputed leader in microfluidic technology.

Acquisitions have been IDEX’s most favored mode for penetrating unexplored markets, which extend its geographic reach, fill technology gaps and strengthen its foothold in the existing markets while expanding product lines.

At the same time, IDEX is striving to expand its businesses in the emerging markets by focusing on organic growth. The company reported organic growth of 7% in the third quarter of 2017 owing to a diligent execution of operational plans. IDEX aims to increase its market exposure and improve sales mix by continually developing new products. With a flexible yet disciplined focus on cost and productivity and a holistic growth model, IDEX has outperformed the industry with an average year-to-date return of 46.9% compared with a gain of 27.1% for the latter.

IDEX generated solid order levels and witnessed significantly higher demand in the North American industrial markets with a marked improvement in larger capital projects. The company currently expects 5% organic growth in 2017 with adjusted earnings of $4.25-$4.27 per share, up from earlier projection of $4.00-$4.17. The favorable growth dynamics offer an enticing investment proposition for investors.

IDEX currently carries a Zacks Rank #2 (Buy). Some other stocks worth considering in the industry are Gorman-Rupp Co. (NYSE:GRC) , Kadant Inc. (NYSE:KAI) and Sun Hydraulics Corporation (NASDAQ:SNHY) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Gorman-Rupp has topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 23.5%.

Kadant has topped estimates in each of the trailing four quarters with an average positive earnings surprise of 20.3%

Sun Hydraulics has topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 9.6%.

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