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Here's Why Investors Should Consider Retaining Xylem Stock Now
ZACKS· 2025-05-13 14:55
Core Insights - Xylem Inc. is experiencing growth in its Measurement & Control Solutions segment due to strong demand for advanced technology solutions like smart metering [1] - The Water Infrastructure segment is benefiting from increased infrastructure projects in the U.S., while the Applied Water segment is recovering due to higher demand for building solutions [1] Financial Performance - As of the end of Q1 2025, Xylem's backlog reached $5.1 billion, supported by strong performance across all regions [2] - The company anticipates revenues between $8.7 billion and $8.8 billion for 2025, reflecting a year-over-year growth of 1-2% [2] Strategic Acquisitions - Xylem is focused on acquisitions to expand its customer base and product offerings, including the acquisition of a majority stake in Idrica in December 2024 [3] - The acquisition of Evoqua in May 2023 enhanced Xylem's capabilities in water treatment, contributing $786 million to total revenues in 2024 [4] Shareholder Returns - In Q1 2025, Xylem paid $98 million in dividends, marking an 11.4% increase year-over-year, and repurchased shares worth $12.9 million [5] - The company raised its dividend rate by 11% in February 2025 [5] Operational Challenges - Xylem is facing rising operating costs, with a 15.1% year-over-year increase in cost of revenues in 2024 and a 1.6% increase in Q1 2025 [8] - Selling, general, and administrative expenses surged 8.8% in 2024 due to operational expenditures from the Evoqua acquisition [8] Debt Levels - The company exited Q1 2025 with long-term debt of $1.97 billion, which may impact profitability [7] - Cash and cash equivalents stood at $1.06 billion, raising concerns given the high debt levels [7]
HomesToLife Ltd Announces Acquisition of HTL Marketing Pte Ltd, with 2024 Sales of US$330 Million
Globenewswire· 2025-05-05 12:00
Singapore, May 05, 2025 (GLOBE NEWSWIRE) -- HomesToLife Ltd (NASDAQ: HTLM) ("HomesToLife" or the "Company"), the holding company of one of the leading home furniture products retail chains in Singapore, today announced that it has entered into a definitive sale and purchase agreement (the "Sale and Purchase Agreement") with New Century International Homes Pte Ltd ("New Century") to acquire 100% of equity interests in HTL Marketing Pte Ltd ("HTL Marketing"), a leading B2B procurer and supplier of premium uph ...
DSV, 1154 - DSV COMPLETES THE ACQUSITION OF SCHENKER
Globenewswire· 2025-04-30 05:35
Core Viewpoint - DSV A/S has successfully completed the acquisition of DB Schenker, establishing a significant player in the global transport and logistics industry with an enterprise value of approximately DKK 106.7 billion (EUR 14.3 billion) [1][5]. Company Overview - The acquisition aligns with DSV's growth strategy, leveraging similarities in business models and services between DSV and Schenker to create operational synergies and enhance customer relationships [2][4]. - The combined entity is projected to have a pro forma revenue of approximately DKK 310 billion and a workforce of nearly 160,000 employees across more than 90 countries [3]. Financial Impact - The equity value of the transaction is approximately DKK 86.5 billion (EUR 11.6 billion), with transaction multiples of 0.75x EV/revenue and 13.0x EV/EBIT based on Schenker's 2024 financials [5]. - Annual synergies from the integration are estimated to reach DKK 9.0 billion by the end of 2028, primarily from consolidating operations and back-office functions [6]. - The transaction is expected to be EPS accretive by 2026, with ambitions to lift operating margins to DSV's levels by 2028 [7]. Capital Structure - DSV raised approximately DKK 75.0 billion (EUR 10.0 billion) through equity and bond issuances to finance the acquisition, with the remaining costs covered by cash and credit facilities [9]. - The pro forma financial gearing ratio is expected to be around 3.0x at the completion of the transaction, with a target to return to below 2.0x by H1 2027 [10][11]. Governance and Outlook - Jochen Thewes, the current CEO of Schenker, is intended to be nominated for DSV's Board of Directors [12]. - The acquisition's preliminary impact is included in DSV's upgraded outlook for 2025, with expected EBIT before special items in the range of DKK 19.5-21.5 billion [18].