Published on 2 Jun 2021 on Zacks via Yahoo Finance

Helios (HLIO) to Buy NEM, To Boost Electro-Hydraulics Offerings

Helios Technologies, Inc. HLIO yesterday announced that it signed an agreement to acquire Italy-based NEM S.r.l. The financial terms of the definitive deal have been kept under wraps.NEM specializes in providing hydraulic solutions to be used for construction, material handling, agriculture and industrial vehicle purposes. It has a solid customer base in various regions, especially Asia and Europe.

Inside the Headlines

As noted, the above-mentioned buyout is anticipated to solidify Helios’ offerings in the electro-hydraulics market as well as expand its manufacturing capabilities, geographical reach (especially in Europe) and presence in the OEM market. Also, the buyout will complement Helios’ Cartridge Valve Technology (“CVT”) offerings, especially for customers in agriculture machinery, material handling, industrial and construction markets.Notably, the assets to be acquired will be integrated with Helios’ Hydraulics segment. The segment offers quick-release hydraulic coupling solutions, cartridge valve technology products and hydraulic system design solutions. Brands offered by the segment are Custom Fluidpower, Sun Hydraulics and Faster.The segment’s sales expanded 15% year over year to $119.1 million in the first quarter of 2021, driven by solid demand in agriculture and construction markets of the Asia Pacific and Europe, Middle East, Africa (“EMEA”) regions. However, weakness in the American business was spoilsport. It represented 58.2% of the company’s first-quarter revenues.Subject to the satisfaction of closing conditions, the buyout is anticipated to close in the third quarter of 2021.