Industry Week in Review – April 22, 2011
The markets were closed on Friday in observance of Good Friday, but shares rose since Monday with the Dow and S&P 500 climbing about 1.3% and NASDAQ rising 2%, as a number of 1Q11 earnings reports were released that exhibited strong performance.
Notes on some big movers:
EMS Technologies Inc. (Up 22.6%): Shares rose for the week as the Company announced on Tuesday that it has received inquiries from potentially interested acquirers and that its Board of Directors has determined to initiate a formal process to explore strategic alternatives
GlobeComm Systems Inc. (Up 8.0%): Shares rose for the week following the broader market and continuing the Company’s recent trend of gains since the announcement of the acquisition of ComSource Inc. back on April 8th
Goodrich Corp. (Up 4.4%): Shares rose for the week as the Company released its 1Q11 earnings on Friday, reporting a 75% increase in net income per diluted share, a 12% increase in sales, and increasing the outlook for full-year 2011 net income per diluted share to $5.40 – $5.55
Notes on some relevant transactions:
Berkshire Partners announced on Thursday that it has partnered with the management of Engineering Solutions & Products (“ESP”) LLC to recapitalize the company. ESP is a premier provider of acquisition, logistics, and technology support services to the DoD, particularly in the C4ISR area. ESP founder, James E. Hoffman, Jr., will retain a significant ownership position in the company and remain CEO.
Chemring Group plc announced on Tuesday that it has conditionally agreed to acquire the Detection Systems operations and certain related assets of General Dynamics Armament and Technical Products, a subsidiary of General Dynamics Corporation, for a total cash consideration of $90 million. Detection Systems is a U.S. leader in biological, chemical, and stand-off explosive detection, and generated CY2010 revenue and EBIT of $61.5 million (1.46x) and $8.3 million (10.8x), respectively. The acquisition enhances Chemring’s counter-IED business, provides a complementary capability to its existing subsidiaries, NIITEK and Chemring EOD, and helps expand its growing global market.
Intergraph Corporation announced on Tuesday that it has acquired the public safety software applications, personnel, and customer contracts of Denali Solutions, LLC, a provider of records management system, investigative, and administrative solutions. The acquisition advances Intergraph’s ability to provide public safety and security agencies with an integrated, end-to-end incident management suite encompassing computer-aided dispatch, records management, mobile dispatch, and incident analytics capabilities.