CLEVELAND (March 6, 2:30 p.m. ET) — Park-Ohio Holdings Corp. has announced a planned acquisition and has reported a big increase in fourth-quarter earnings.
The diversified manufacturing and logistics company said its Park-Ohio Industries unit has agreed to acquire Fluid Routing Solutions Inc., a manufacturer of industrial hose products and fuel filler and hydraulic fluid assemblies, in an all-cash transaction valued at $97.5 million.
Park-Ohio said Fluid Routing Solutions sells to automotive and industrial customers throughout North America, Europe and Asia. The company has more than 950 employees and five production operations in Florida, Michigan, Ohio, Tennessee and the Czech Republic.
Park-Ohio said Fluid Routing Solutions had sales of about $190 million for the trailing 12 months that ended Jan. 31, 2012. Fluid Routing Solutions makes rubber, thermoplastic and fluoropolymer hose, according to its website.
Park-Ohio said the transaction will be immediately accretive to earnings.
In commenting on the deal, Park-Ohio chairman and CEO Edward F. Crawford said the planned acquisition “will allow our Supply Technologies business to expand its product offerings to existing and new industrial customers worldwide.”
“Additionally, the FRS leadership position in fuel filler assemblies will complement and augment our relationship with key OEM and aftermarket automotive customers,” Mr. Crawford. said
The transaction is expected to close by March 30, subject to the expiration of waiting periods and the receipt of approvals under the Hart-Scott-Rodino Antitrust Improvements Act.
Separately, Park-Ohio announced that its fourth-quarter earnings climbed to $18.9 million, or $1.58 per diluted share, from $3.5 million, or 30 cents a share, in the fourth quarter of 2010.
Park-Ohio said net income in the latest fourth quarter included an income tax benefit of $11.3 million from reversal of the company's valuation allowance against its U.S. net deferred tax assets. Its net income before that tax benefit was $7.7 million, or 64 cents a share, more than double its year-earlier earnings.
Sales at Park-Ohio rose 6.3 percent, to $234.6 million from $220.5 million.