Twin Disc acquires Kobelt Manufacturing for $16.5 million

MILWAUKEE - Twin Disc , Inc. (NASDAQ: NASDAQ:TWIN), a $133 million market cap company known for its power transmission technology, announced the acquisition of Kobelt Manufacturing Co. Ltd., a Canadian firm specializing in industrial and marine control systems. The purchase, valued at $16.5 million, aims to widen Twin Disc’s portfolio and international reach. According to InvestingPro data, the company’s stock is currently trading near its 52-week low at $9.40.

Kobelt, operating from British Columbia, has been a player in the brake, control, and steering systems market for industrial and marine applications. For the fiscal year ending December 31, 2024, Kobelt reported revenues of around $14 million, which would add to Twin Disc’s current annual revenue of $321.4 million. This acquisition is projected to immediately benefit Twin Disc’s earnings according to U.S. GAAP. InvestingPro analysis indicates the company is currently undervalued, with strong fundamentals including a healthy current ratio of 2.11, suggesting robust liquidity.

John H. Batten, President and CEO of Twin Disc, expressed enthusiasm for the integration, highlighting Kobelt’s established market presence in 60 countries and its synergistic fit with Twin Disc’s brand and product line. Dave Bockhold, CEO of Kobelt, echoed these sentiments, pointing to the strategic alignment of the companies’ product lines, manufacturing capabilities, and corporate cultures.

The union is expected to foster growth opportunities and partnerships, leveraging Twin Disc’s global sales and service team. With Kobelt’s in-house foundry and bronze die casting capabilities, precision machining, assembly, and testing, the acquisition promises comprehensive quality control and after-sales services.

Twin Disc, with a rich history of supplying marine and heavy-duty off-highway power transmission equipment, serves a diverse customer base across commercial, military marine markets, and other industrial sectors. The company operates through a direct sales force and distributor network worldwide.

This transaction, based on a press release statement, marks a strategic move by Twin Disc to enhance its product offerings and capitalize on Kobelt’s expertise and market position. The acquisition is a step towards consolidating Twin Disc’s standing as an integrated systems supplier in the marine and industrial sectors. For detailed analysis and additional insights, including 8 more key ProTips and comprehensive financial metrics, visit InvestingPro, where you can access the full Pro Research Report covering Twin Disc’s strategic positioning and financial outlook.

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