AUSTIN, TX - Thermon Group Holdings, Inc. (NYSE:THR), a player in industrial process heating solutions, announced today the acquisition of Italy-based electric heater manufacturer Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. (F.A.T.I.). The transaction, which was funded with cash on hand, amounted to a purchase price of 12.5 million euro, subject to customary adjustments.
F.A.T.I. has established itself as a significant designer and producer of electrical heaters and heating systems, catering to diverse industrial markets including oil & gas, pharmaceutical, renewables, nuclear, and HVAC. With a history spanning nearly 80 years, F.A.T.I. distributes its products in over 30 countries. In the calendar year ending December 31, 2023, the company reported revenue exceeding 12 million euro.
Thermon's President and CEO, Bruce Thames, expressed enthusiasm about the acquisition, emphasizing the alignment between the two companies' commitment to delivering safe and innovative solutions. He noted that F.A.T.I.'s integration into Thermon would enhance the company's product portfolio and strengthen its global manufacturing capabilities, particularly in Europe and Asia.
The acquisition is seen as mutually beneficial, with Enrico Terruzzi, General Manager of F.A.T.I., highlighting the opportunity to utilize Thermon's extensive resources and global presence to expand product offerings and customer service.
Thermon, headquartered in Austin, Texas, is known for its comprehensive solutions in flow assurance, process heating, temperature maintenance, freeze protection, and environmental monitoring.
This strategic move is part of Thermon's broader strategy to grow through initiatives focused on decarbonization, diversification, and digitization. The information for this article is based on a press release statement.
In other recent news, Thermon Group Holdings, Inc. reported a notable 8% year-over-year increase in revenue for its first quarter of fiscal year 2025, reaching $115 million. This rise was largely influenced by the integration of Vapor Power's operations, despite a 5% decline in organic sales due to a slowdown in large capital expenditure projects. On the other hand, operational expenditure revenues saw a promising 20% increase from the previous year, reflecting Thermon's diversified market exposure.
Thermon Group's revenue guidance for the full year stands at $527 million to $553 million, with expectations for Vapor Power's contribution to fall between $55 million and $59 million. The company also anticipates an adjusted EBITDA in the range of $112 million to $120 million, with an adjusted EPS between $1.90 and $2.06.
Despite the challenges, the company maintains an optimistic outlook, expecting a rebound in large project spending in the second half of 2025. These are among the recent developments that underline Thermon Group's strategic focus on balancing its revenue streams and enhancing shareholder value.
InvestingPro Insights
Thermon Group Holdings' recent acquisition of F.A.T.I. aligns well with its growth strategy and financial position, as revealed by InvestingPro data. The company's market cap of $979.59 million USD suggests it has the financial heft to make strategic acquisitions like F.A.T.I., which was purchased for 12.5 million euros.
InvestingPro data shows that Thermon's revenue growth stands at 11.24% over the last twelve months, indicating a healthy expansion trajectory. This growth is likely to be further bolstered by the F.A.T.I. acquisition, which brings in additional annual revenue exceeding 12 million euros.
An InvestingPro Tip highlights that Thermon "operates with a moderate level of debt," which is crucial for maintaining financial flexibility for acquisitions and expansion. This conservative approach to leverage is particularly important in the current economic climate.
Another relevant InvestingPro Tip notes that Thermon's "liquid assets exceed short term obligations," suggesting a strong balance sheet that can support its growth initiatives, including this recent acquisition.
For investors seeking a deeper understanding of Thermon's financial health and growth prospects, InvestingPro offers 6 additional tips that could provide valuable insights into the company's future performance following this strategic move.
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