This has been an interesting quarter for companies in the flow control space. While many end-markets are quite strong, including food/beverage, biopharma, and pulp/paper, and others are starting to improve (chemicals, among others), many companies are reporting weak-looking results as improving short-cycle demand is counterbalanced by a slower pickup in larger project-oriented spending.
Such is the case with SPX FLOW (FLOW), and in this specific case there are also "order selectively" decisions pressuring reported results, as management continues with a plan to boost future margins and growth sustainability by getting more selective with the large project-type orders it takes on. Nevertheless, SPX Flow earnings do support underlying strength in the flow control space - good news for companies like Alfa Laval (OTCPK:ALFVY), Dover (DOV), Emerson (EMR), and IDEX (IEX).
SPX FLOW is in the process of being acquired by private equity group Lone Star Funds for $86.50/share. I do not expect any counterbids, and I would expect the deal to close in the first half of 2022. With less than 1% upside to the deal price, I see no reason for investors to hold SPX FLOW shares any longer.
Read the full article here:
SPX FLOW Highlights Some Ongoing Turbulence In Flow/Process Control
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