Bruker Corporation (BRKR) has been making waves in the industry with a slew of acquisitions in 2023. These deals have significantly bolstered the company’s sales and growth trajectory, prompting analysts to revise their outlook for the year.
One of the most notable acquisitions was the purchase of NanoString Technologies, a leading provider of solutions for spatial transcriptomics and gene expression analysis. This $393 million cash deal added $168 million in annual sales to Bruker’s portfolio. Another significant acquisition was TecFin S.a.r.l., a European developer and manufacturer of proprietary molecular diagnostics systems and assays. This deal, valued at EUR 870 million, brought in an additional EUR 150 million in sales.
In addition to these larger deals, Bruker has also made several smaller acquisitions, including Nion, Tornado Spectral Systems, Chemspeed, Spectral Instruments Imaging, and a Japanese firm. These bolt-on deals have collectively added approximately $83 million in annual sales to the company’s top line.
As a result of these acquisitions, Bruker now expects to generate $3.26 billion in sales in 2024, representing a 10% increase over 2023. Organic growth is anticipated to contribute 6% to this growth, with the remaining 4% coming from the acquired businesses. Adjusted earnings are projected to increase to $2.71-$2.76 per share.
While the acquisitions have boosted Bruker’s sales and growth prospects, they have also increased the company’s leverage ratios. Pro forma net debt is now estimated to be between $2.3 and $2.8 billion, resulting in leverage ratios of about 3 times. This increase in debt is a concern for some investors, but management believes that the growth opportunities created by the acquisitions justify the higher debt levels.
The impact of these acquisitions on Bruker’s margins and earnings is not yet fully known, but analysts expect to gain more clarity during the company’s upcoming earnings releases. The next earnings release is scheduled for May 3rd, and it is likely to provide more details on the financial implications of these deals.
Overall, Bruker Corporation is well-positioned for continued growth in 2024 and beyond. The company’s recent acquisitions have significantly expanded its product portfolio and customer base, and management is confident that the growth opportunities created by these deals will outweigh the increased leverage. Investors should keep a close eye on Bruker’s upcoming earnings releases to gain more insight into the financial impact of these acquisitions and the company’s long-term growth prospects.
