iRobot (IRBT) Buys Aeris Cleantec, Expands Product Offerings
iRobot's (IRBT) buyout of Aeris Cleantec will enable the company to diversify its product line, expand into the non-robotics market, and strengthen its customer base.
iRobot Corporation IRBT recently closed the acquisition of privately-held Aeris Cleantec AG. The financial terms of the transaction were kept under wraps.
iRobot’s shares declined 1.3% yesterday to eventually close the trading session at $88.35.
Based in Cham, Zug Switzerland, Aeris Cleantec is a designer and manufacturer of superior-quality air purifiers for improving air quality at homes. Featuring High Efficiency Particulate Air (HEPA) filters, the company’s air purifiers help in eliminating various types of pollutants, including allergens, odors, pet dander, and smoke. The air purifiers can also be controlled from the Aeris mobile app by its customers.
Benefits of the Deal
The Aeris Cleantec acquisition supports iRobot’s vision of providing smart home ecosystem and will enable the company to diversify its product line and expand into the non-robotics market. Aeris Cleantec’s expertise in air purification technology coupled with its strong innovation capabilities will enable iRobot to offer a comprehensive and customized product line of air purifiers to customers.
As noted, iRobot will leverage its strong network of retail partners and distributors, efficient marketing team, and a solid base of its connected customers to boost the acceptance of the Aeris Cleantec products in the market. iRobot also remains focused on adding new features to Aeris product offerings and integrating them with its connected home robot ecosystem. With the help of its Genius Home Intelligence platform, iRobot looks forward to providing a more personalized cleaning experience to its customers.
The acquisition is anticipated to be modestly dilutive to iRobot’s earnings in 2022. However, it is likely to be accretive to the company’s earnings in 2023.
Zacks Rank, Price Performance and Estimates Trend
iRobot, with a $2.4-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company’s solid product offerings, focus on innovation, manufacturing diversification, and a surge in the e-commerce business are likely to act as tailwinds in the quarters ahead. However, supply-chain issues, logistics woes, shipping delays, and high sales and marketing expenses are expected to adversely impact its near-term performance.
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In the past three months, the company’s shares have gained 11% compared with the industry’s growth of 8.5%.
In the past 30 days, the Zacks Consensus Estimate for the company’s earnings has decreased 46.2% to $1.47 for 2021 while the same for 2022 has been declined 18.3% to $3.17.
Zacks Rank & Stocks to Consider
IRBT currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies from the Zacks Industrial Products sector are discussed below.
Heritage-Crystal Clean, Inc HCCI presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 62.29%, on average.
Heritage-Crystal’s earnings estimates increased 9.7% for 2021 and 23.9% for 2022 in the past 30 days. Its shares have gained 19.6% in the past three months.
Casella Waste Systems, Inc. CWST presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 42.11%, on average.
Casella Waste’s earnings estimates have increased 11.4% for 2021 and 10.1% for 2022 in the past 30 days. Its shares have gained 19.6% in the past three months.
Energy Recovery, Inc. ERII presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 123.33%, on average.
In the past 30 days, Energy Recovery’s earnings estimates have increased 18.2% for 2021 and 39.3% for 2022. Its shares have gained 23.5% in the past three months.
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