Janus International Acquires Kiwi II Construction for $97.2M
Janus International announced its asset acquisition of Kiwi II Construction, a self-storage and pre-engineered buildings provider. The acquisition will allow Janus to offer a more comprehensive suite of products and services to self-storage owner-operators and enhance its services for self-storage general contractors, representing another step forward in Janus's ongoing commitment to provide a comprehensive suite of self-storage building solutions throughout North America, the company said. As consideration for the asset acquisition, the company paid approximately $97.2M in cash. This reflects an approximate 5x transaction multiple of adjusted EBITDA, including expected annualized full-year synergies and anticipated tax-savings. Post acquisition, Janus's net leverage ratio is expected to remain within the stated long-term target range of 2.0x to 3.0x. Janus entered the self-storage building space in 2019 with the acquisition of BETCO, Inc., a leading innovator in engineering, design, manufacturing, and construction of self-storage buildings. At present, both Kiwi II and BETCO, Inc. will continue to operate under their own brand names.
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JohnsByrne Acquires Los Angeles-Based Municipal Packaging, Expanding to Five Production Sites
- Acquisition Expansion: JohnsByrne's acquisition of Los Angeles-based Municipal Packaging adds 75 employees and two production sites, increasing its operational facilities to five and enhancing its capabilities in premium and specialty packaging.
- Market Strategy Integration: The transaction will incorporate Municipal Packaging into the JohnsByrne organization, with plans to align their market strategies over the coming months, thereby improving service capabilities across various end markets, including health and beauty.
- West Coast Presence: Following the acquisition, Municipal Packaging will continue operations on the West Coast, helping JohnsByrne establish a stronger regional presence and further expand its influence in the U.S. market.
- Brand Commitment: JohnsByrne CEO Kevin Andrews emphasized that Municipal Packaging's reputation aligns with their commitment to innovation and quality, indicating the company's dedication to building a nationally recognized brand and enhancing customer partnerships.
Putting the Pieces Together: FIDU May Have a Value of $92
ETF Performance Analysis: The Fidelity MSCI Industrials Index ETF (FIDU) has an implied analyst target price of $91.84, indicating an 11.01% upside from its current trading price of $82.73.
Notable Holdings: Key underlying holdings with significant upside potential include Janus International Group Inc (JBI), Array Technologies Inc (ARRY), and V2X, Inc (VVX), with target price increases of 24.10%, 22.43%, and 13.54% respectively.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets could lead to future downgrades if they are based on outdated information.
Investor Research Recommendation: Investors are encouraged to conduct further research to assess the validity of analysts' targets in light of recent company and industry developments.
