Post by
microcaphobby on Apr 27, 2023 10:21pm
from 2023 report Harris Williams
here are some highlites
The outlook for current market participants remains highly favorable and offers attractive growth opportunities, which is further supported by growing investor interest.
Unlike power transformer manufacturers, low- and medium-voltage distribution transformer manufacturers are much better insulated from import competition.
The transformer market is set to experience explosive growth driven by billions in federal spending targeting key initiatives in which transformers are critical components, including clean energy, EV charging, and grid resiliency; moreover, American transformer manufacturers are poised to benefit from expanded Buy America rules and material tax credits for domestic production
High Barriers to Entry. High Capital Intensity for New Entrants
Comment by
microcaphobby on Apr 28, 2023 10:10am
look at page 8: Hammond is one of the 5 big suppliers The outfit that wrote the report does only M and A work. They must think there is lots of opprotuity to buy one or more players. I think Hammmond will get an offer from Hitachi or other large player( eaton). Hammond would have to get $80 a share for it to be worthwhile.
Comment by
Catscratch on Apr 28, 2023 12:11pm
The simple fact that an investment bank would publish a detailed report on a fairly niche industry segment (and include Hammond Power in the report) indicates that there is good M&A interest. My guess is Bill Hammond wants to continue to build the business but a $1B take-out valuation on Hammond might change his mind.