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Worthington (WOR) Boosts Laser Welding With BlankLight Buyout

Worthington Industries, Inc. WOR yesterday announced that it acquired some assets of the U.S. BlankLight business of Shiloh Industries, Inc. The transaction value was $105 million.

It is worth mentioning here that Worthington’s shares gained 1.43%, ending the trading session at $67.28 yesterday.

Inside the Headlines

As noted, the acquired assets engage in providing laser-welded solutions, especially for customers in the mobility industry. The solutions help in lowering costs, material and weight. It has four facilities, with two located in Valley City, OH, and one each in Bowling Green, KY, (heavy gauge blanking facility) and Canton, MI. The acquired business employed 200 people.

In 2020, the acquired business generated revenues of $170.5 million and adjusted earnings before interest, tax, depreciation and amortization of $20.5 million.

It is anticipated that the facilities located in Valley City, OH, and Canton, MI, will enhance the capabilities of Worthington’s joint venture related to laser-welded products — TWB Company, LLC. The addition of products like aluminum and curvilinear welded blanks will be advantageous for TWB Company. Then again, the heavy gauge blanking facility will be part of the Steel Processing segment of Worthington.

The acquisition price of $105 million was settled by Worthington through available cash.

Other Inorganic Actions by Worthington

Worthington believes in acquiring businesses for expanding its business and product offerings. Also, it engages in divestments to strengthen shareholder value.

In March, Worthington divested the Pomona, CA-based Structural Composites Industries facility. The divestiture will help it focus on mobility businesses in Asia and Europe.

In January, Worthington sold off the oil & gas equipment business. However, the company acquired General Tools & Instruments Company LLC and PTEC Pressure Technology GmbH in the same month.

Zacks Rank, Price Performance and Estimate Trend

Worthington currently carries a Zacks Rank #2 (Buy). The company is poised to benefit from its diversified business structure, inorganic activities and solid demand for products.

In the past three months, the company’s shares have decreased 7.4% compared with the industry’s growth of 1.3%.

 

Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate of Worthington’s earnings is pegged at $3.90 per share for fiscal 2022 (ending May 2022), suggesting growth of 5.4% from the 60-day-ago figure.

Worthington Industries, Inc. Price and Consensus

 

Worthington Industries, Inc. price-consensus-chart | Worthington Industries, Inc. Quote

Other Stocks to Consider

Three other top-ranked stocks in the industry are Mueller Industries, Inc. MLI, TriMas Corporation TRS and The Timken Company TKR. While both Mueller and TriMas currently sport a Zacks Rank #1 (Strong Buy), Timken carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, earnings estimates for these stocks have improved for the current year.

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