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Worthington Enterprises acquires Hexagon Ragasco

EditorAhmed Abdulazez Abdulkadir
Published 03/06/2024, 17:02
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COLUMBUS, Ohio - Worthington Enterprises (NYSE: WOR), a prominent designer and manufacturer, announced today the completion of its acquisition of Hexagon Ragasco, a leader in the production of lightweight LPG composite cylinders. The move is expected to bolster Worthington's presence in the global propane market and enhance its product offerings, particularly in regions with developing infrastructure.

The acquisition, which aligns with Worthington's strategic goals, introduces Hexagon Ragasco's advanced composite cylinders to Worthington's portfolio. These cylinders are noted for their role in the transition to clean fuels, a significant consideration in developing countries.

Andy Rose, President and CEO of Worthington Enterprises, expressed enthusiasm about the integration of Hexagon Ragasco and its employees into the Worthington family. Rose also highlighted the alignment of the acquisition with the company's foundational principles, established by founder John H. McConnell, which emphasize shareholder value and the "Golden Rule" of treating all stakeholders with respect.

Worthington Enterprises, originally known as Worthington Industries (NYSE:WOR), has a long-standing tradition of distributing dividends quarterly since going public in 1968. The completion of the acquisition coincides with the company's Founder's Day, marking 69 years since its establishment.

About Worthington Enterprises: Headquartered in Columbus, Ohio, Worthington Enterprises operates in two primary segments: Building Products and Consumer Products. It employs approximately 4,000 people across North America and Europe. The company's portfolio includes a variety of brands such as Balloon Time®, Bernzomatic®, and Coleman®. Worthington is also engaged in a joint venture that supports the hydrogen ecosystem.

The information in this article is based on a press release statement from Worthington Enterprises.

InvestingPro Insights

As Worthington Enterprises (NYSE: WOR) solidifies its position in the global propane market through the strategic acquisition of Hexagon Ragasco, financial metrics and market performance provide a broader context for evaluating the company's prospects. The company's market capitalization stands at a robust $2.86 billion, underpinned by a price-to-earnings (P/E) ratio of 10.22, suggesting a valuation that is reasonable relative to its earnings. This is bolstered by an adjusted P/E ratio over the last twelve months as of Q3 2024 of 10.41.

Investors may find Worthington's commitment to shareholder returns particularly noteworthy. An InvestingPro Tip highlights the company's impressive track record of raising its dividend for 10 consecutive years, a testament to its financial stability and dedication to returning value to shareholders. Moreover, the company has not just maintained, but has increased dividend payments for an extraordinary 52 consecutive years, showcasing a long-term commitment to its shareholders.

While the company's gross profit margins appear to be under pressure, with a margin of 13.35% over the last twelve months as of Q3 2024, Worthington's ability to cover interest payments with its cash flows remains robust—an indicator of financial health that is crucial for sustaining operations and pursuing growth strategies such as the recent acquisition.

For investors and analysts looking to delve deeper into Worthington's financials and performance, additional InvestingPro Tips are available. These tips provide a comprehensive analysis of the company's financial health and market standing. For a limited time, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, which includes a total of 16 tips for Worthington Enterprises, offering valuable insights for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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