LAS VEGAS - Live Ventures Incorporated (NASDAQ:LIVE), a diversified holding company, announced the acquisition of Central Steel Fabricators, LLC (CSF), a Chicago-based company specializing in metal products for data centers and the communications industry. CSF, established in 1969, serves over 500 customers with a diverse product range that includes cable racks and network bays, among other items.
The acquisition aligns with Live Ventures' long-term strategy and existing steel manufacturing operations. Jon Isaac, President and CEO of Live Ventures, emphasized that CSF's role in supporting infrastructure for AI and data centers positions it to benefit from increased corporate investment in these areas.
Mike Murzanski, President of CSF, expressed enthusiasm about joining Live Ventures, noting that the move would provide growth capital for further expansion. He highlighted CSF's commitment to customer service and its strategic position to capitalize on growth in communications infrastructure.
Thomas R. Sedlak, CEO of Precision Marshall, a Live Ventures subsidiary, also commented on the acquisition, stating that CSF's product offering and customer service would be a strong addition to the company's portfolio.
The acquisition is part of Live Ventures' broader strategy to invest in well-run, profitable middle-market companies across various sectors. Since its refocus as a diversified holding company in late 2011 under Jon Isaac, Live Ventures has expanded its portfolio to include businesses in textiles, flooring, tools, steel, and entertainment.
Artemis Securities Clearing, LLC served as CSF's financial adviser for the transaction. For more details about CSF, interested parties can visit their website.
This news is based on a press release statement from Live Ventures Incorporated.
InvestingPro Insights
As Live Ventures Incorporated (NASDAQ:LIVE) continues to expand its portfolio with the strategic acquisition of Central Steel Fabricators, LLC, a deeper look into the company's financial metrics provides a clearer picture of its market position. With a market capitalization of $76.4 million, Live Ventures is navigating the market with a significant focus on growth, as evidenced by its recent acquisition. The company's commitment to investing in infrastructure for AI and data centers through CSF is underscored by a robust revenue growth of 42.73% in the last twelve months as of Q2 2024.
While the company's price-to-earnings (P/E) ratio stands at -10.28, reflecting challenges in profitability over the last twelve months, the adjusted P/E ratio shows a slight improvement to -9.26. This suggests that investors may be looking at future earnings potential rather than past performance. Additionally, Live Ventures' gross profit margin remains healthy at 31.03%, indicating a solid ability to control costs relative to revenue.
Two key InvestingPro Tips for Live Ventures include the company's strong free cash flow yield, which suggests that the company is generating a healthy amount of cash relative to its share price, and the fact that its liquid assets exceed its short-term obligations, providing financial flexibility in its operations. These insights could be particularly relevant for investors considering the company's potential in a growing industry.
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