Brunswick Acquires SemahTronix; Shares Slip 2.6%

Brunswick Corporation (BC) has announced the acquisition of SemahTronix, a global supplier of electrical wiring harnesses for advanced products in the marine, mobile and defense industries. The financial terms of the deal have not been disclosed so far. Shares of Brunswick slipped 2.6% to close at $94.85 on Monday.

Brunswick engages in the design, manufacture and marketing of recreation products, including marine engines, boats, fitness equipment and active recreation products. (See Brunswick stock charts on TipRanks)

SemahTronix will be added to Brunswick’s Advanced Systems Group (ASG). SemahTronix has over 40 years of experience in all aspects of harnessing solutions. Also, it is in line with ASG’s strategy to provide continuous and smooth end-to-end integration for its global channel partners.

ASG consists of leading Parts and Accessories (P&A) brands in advanced batteries, electrical power management, digital control & monitoring and networked systems & devices for the marine, RV, specialty vehicle and other industries. This is ASG’s third acquisition in the past four months.

Commenting on the deal, the President of Advanced Systems Group, Brett Dibkey, said, “Adding SemahTronix will allow us the ability to vertically integrate, offering a higher degree of quality control and faster lead time, and aligns with our mission to expand within the rapidly growing system integration market and create opportunities for further growth in adjacent markets.”

Last month, B. Riley Financial analyst Eric Wold maintained a Buy rating on the stock with a price target of $135, implying 42.3% upside potential to current levels. Wold expects Brunswick to report third-quarter earnings of $2.30 per share.

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys, 2 Holds and 1 Sell. The average Brunswick price target of $111.71 implies 17.8% upside potential to current levels. Shares have gained 62.4% over the past year.