Blog Coverage Standex Acquires OKI Sensor Device; Adds Magnetic Reed Switches to its Portfolio

Upcoming AWS Coverage on Parker Hannifin Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 3, 2017 / Active Wall St. blog coverage looks at the headline from Standex International Corp. (NYSE: SXI) as the Company announced on February 02, 2017, that it has entered into a definitive agreement with OKI Electric Industry Co., Ltd, based in Japan, to acquire its wholly owned subsidiary, OKI Sensor Device Corporation. The terms of the transaction were not disclosed. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Standex International’s competitors within the Industrial Equipment & Components space, Parker Hannifin Corp. (NYSE: PH), reported its results for Q2 FY17 ended December 31, 2016, on February 02, 2017. AWS will be initiating a research report on Parker Hannifin in the coming days.

Today, AWS is promoting its blog coverage on SXI; touching on PH. Get all of our free blog coverage and more by clicking on the link below:

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The Agreement

Standex operates across five segments, which are: Food Service Equipment, Engraving Group, Engineering Technologies, Electronics, and Hydraulics group. Standex has a definitive presence across several international markets and throughout the US, with a workforce of 3,500 employees. This acquisition of OKI Sensor Device is complementary to Standex Electronics business where the acquired company deals primarily in the development of high-quality magnetic reed switches. Standex, on the other hand, delivers custom engineered sensor and electromagnetic solutions to customers across automotive, medical, aerospace, industrial, and appliance markets.

The acquisition is viewed as an expansion of Standex in the Asian electronic industry. Standex plans to leverage its engineering, manufacturing, and sales capabilities, to provide customers with reed switches and related magnetic solutions while serving OKI Sensor Device’s diverse distribution channels. OKI Sensor Device reported revenue of about $56 million for FY15 ended March 31, 2016. Approximately $12.9 million of the net revenue comprised of sales to Standex Electronics. The acquisition is expected to close by March 31, 2017, while being subject to regulatory approvals. It is set to be accretive to EPS by $0.08-$0.11 in FY17 and $0.40-$0.44 in FY18.

OKI Reed Switches Portfolio

OKI Sensor Device initially started to manufacture magnetic reed switches in 1964, and in 1996, the Company was incorporated as a standalone, reed switch Business Corporation. OKI Sensor Device views expansion across new dimensions of the market, including the “Internet of Things”, which is set to position OKI Sensor Device in a major growth area.

Standex Expansion Strategy

Standex views this acquisition as a step to penetrate into the Asian markets. Standex has been an existing customer to OKI Sensor Device, and this acquisition is set to strengthen the Company’s development pipeline. Prior to this acquisition, the Company announced another deal on October 18, 2016, where it acquired South Carolina-based Horizon Scientific, Inc., a supplier of cryogenic equipment and laboratory refrigerators and freezers. The transaction is expected to be accretive to the Company’s EPS by $0.01-$0.02 in FY17 and $0.07-$0.09 in FY18.

On January 26th, 2017, Standex International announced that its Board of Directors has declared a quarterly cash dividend of $0.16 per share, which is payable February 28, 2017, to shareholders of record February 09, 2017. The dividend is the Company’s 210th consecutive quarterly cash dividend. Standex has paid dividends each quarter since it became a public corporation in November 1964.

Stock Performance

At the closing bell, on Thursday, February 02, 2017, Standex International’s stock jumped 6.89%, ending the trading session at $93.05. A total volume of 109.87 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 53.06 thousand shares. In the last three months and previous twelve months, shares of the Company have advanced 23.59% and 41.20%, respectively. The Company’s shares are trading at a PE ratio of 23.75 and have a dividend yield of 0.69%. At Thursday’s closing price, the stock’s net capitalization stands at $1.19 billion.

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