UK's Luxfer to be acquired by Wynnchurch

Overview

• UK materials engineering firm's Q2 sales and adjusted EPS declined yr/yr

• Adjusted EBITDA for Q2 fell 4.3% from prior year

• Company to be acquired by Wynnchurch Capital for $17.37 per share in cash

Outlook

• Company did not provide specific guidance due to pending acquisition

Result Drivers

• MARGIN IMPROVEMENT - Adjusted gross margin increased 130bps to 25.2% despite lower sales

Company press release: ID:nBw1s9YMga

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the industrial machinery equipment peer group is "buy"

• Wall Street's median 12-month price target for Luxfer Holdings PLC is $19.50, about 13.9% above its July 27 closing price of $17.12

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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• July 28 - UK's Bodycote H1 revenue rises on aerospace demand

• July 27 - Ireland's DCC Energy to go private in $7.7 billion deal with KKR, Energy Capital

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)