Carr’s Group PLC (LON:CARRC) has acquired US-based NuVision Engineering for a total cash consideration of up to US$20m (£15.4m). The transaction is immediately earnings enhancing. Importantly, it gives German-based Wälischmiller, which is part of the Carr’s Group Engineering division, greatly enhanced access to the US nuclear market. We raise our FY18 and FY19 estimates and revise our indicative valuation from 158p/share to 163p/share.
Acquisition opens up US market
NuVision provides products and field services to clients in the commercial nuclear and fossil power plant industries, including a process for mitigating stress corrosion cracking in nuclear plant pipe welds, engineering design and analysis and radiological decontamination equipment and services. It also supports nuclear decommissioning programmes in the US, UK and Canada through the provision of specialist equipment including its proprietary remote handling arms. Following the transaction, NuVision will start to sell Wälischmiller’s complementary range of remote handling equipment to its established base, thus creating a route to market that overcomes the resistance to purchasing from non-US suppliers that Wälischmiller has experienced in the past. In addition, the acquisition strengthens the services that the group’s Engineering division is able to provide to its customers in the nuclear industry. For example, NuVision is a key supplier on a major nuclear contract that will be delivered by the Manufacturing businesses during FY18.
To read the entire report Please click on the pdf File Below: