OM Group (OMG) Tops Q3 EPS by 5c; Will Acquire Ener-Tek in $24M Cash Deal

OM Group (NYSE: OMG) reported Q3 EPS of $0.32, $0.05 better than the analyst estimate of $0.27. Revenue for the quarter came in at $263 million versus the consensus estimate of $253.3 million.

The Company also announced that it has agreed to acquire Ener-Tek International, Inc. Based in East Greenwich, Rhode Island, Ener-Tek is a designer, developer and manufacturer of high-performance lithium-ion and silver-zinc cells and batteries for niche applications in defense and aerospace markets, operating under the brand name Yardney Technical Products. Subject to regulatory and customary closing conditions, the acquisition is expected to close before year-end and will be reported within OM Group's Battery Technologies segment.

"This acquisition reflects our strategy of building out our existing business platforms with complementary acquisitions," said Joe Scaminace, Chairman and Chief Executive Officer of OM Group, Inc. "Ener-Tek is a perfect fit for our Battery Technologies platform, enabling us to better serve our battery customers with a wider range of innovative solutions. The acquisition is expected to be accretive to our profitability and generate an attractive return on investment."

Total consideration for the acquisition is expected to be $24 million in cash, subject to post-closing adjustments and a potential performance-related payment. Ener-Tek had sales and adjusted EBITDA of approximately $24 million and $3 million, respectively, for the twelve months ended June 30, 2014. Including combined efficiencies and other synergies with its existing EaglePicher business, annual adjusted EBITDA is expected to grow to $5-7 million over the next three years.

For earnings history and earnings-related data on OM Group (OMG) click here.

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