Barclays Comments on Wesco Aircraft Holdings (WAIR) Acquisition of Interfast; Deal Accretive to 2013

May 25, 2012 1:50 PM EDT Send to a Friend
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Barclays maintains an 'Overweight' on Wesco Aircraft Holdings (NYSE: WAIR) price target of $17.00.

Analyst, Carter Copeland, said, "Wesco announced an agreement to acquire Interfast for CDN$134 (~$130mn)...We have assumed that Interfast currently generates ~$75mn in sales with gross margins slightly below the Wesco company average (implying an ~8x EBITDA acquisition multiple for Interfast, consistent with other transactions we've seen in the space)."

Copeland sees three positives from the acquisition including: 1) adding higher-tech and general product offerings; 2) Addition of new customers, here and in China; 3) help in the develop/accelerate implementation of new platform. Separately, he sees the deal being slightly accretive to 2013 earnings (+$0.04)

For an analyst ratings summary and ratings history on Wesco Aircraft Holdings click here. For more ratings news on Wesco Aircraft Holdings click here.

Shares of Wesco Aircraft Holdings closed at $14.05 yesterday.


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