Shares of Lakeland Industries (LAKE) have seen a significant increase over the past three days, despite a stagnant market. This uptrend follows the company’s announcement of its acquisition of the fire and rescue business of LHD Group Deutschland, along with its Hong Kong and Australian subsidiaries, for $16.7 million in cash. This move aligns with LAKE’s long-term growth strategy of expanding its global presence in the fire service market, offering premium firefighter gear, accessories, and maintenance services. The deal is expected to bring in an additional $27 million in annual revenue and boost the company’s bottom line upon completion in May.
With the recent acquisitions of Pacific Helmets and Jolly Scarpe expected to contribute $21-24 million in annual sales, Lakeland Industries projects a 34% increase in revenue for fiscal 2024. This growth is anticipated to help the company achieve its goal of high single-digit revenue growth and raise its adjusted EBITDA margin to the high teens within five years. Analysts predict a positive impact on LAKE’s performance, with a potential continuation of the stock’s recent outperformance following the confirmation of these growth expectations during the upcoming Q4 results report.
Lakeland Industries (LAKE) is among the recommended stocks in the market-beating investment newsletter, Forbes Investor. Investors seeking undervalued opportunities with significant upside potential, similar to LAKE, can explore the newsletter for more insights. The company’s strategic acquisition of the fire and rescue business of LHD Group Deutschland is expected to bolster its presence in key markets such as Germany, Australia, and Hong Kong. This move demonstrates the company’s commitment to expanding its offerings and geographical reach for sustained growth.
The acquisition is poised to strengthen Lakeland Industries’ position in the firefighting market by offering a comprehensive range of products and services to customers. Moreover, the expected annual revenue of $27 million from the new business, combined with the sales contributions from previous acquisitions, sets the stage for robust top-line growth in fiscal 2024. This promising outlook has garnered attention from investors and analysts, who anticipate a positive trajectory for LAKE’s financial performance and stock performance in the coming quarters.
Julius Juenemann, CFA, the equity analyst and associate editor of Forbes Special Situation Survey and Forbes Investor investment newsletters, highlights Lakeland Industries as a current recommendation in the Forbes Investor. Subscribers can access insights on this and other recommended stocks through the newsletter. With a focus on identifying potential growth opportunities and undervalued gems, Forbes Investor offers valuable research and analysis for investors looking to capitalize on emerging trends in the market. The strategic acquisitions and growth prospects presented by Lakeland Industries position the company for success in the firefighting industry and beyond, making it a compelling investment opportunity for forward-thinking investors.
