Protective clothing maker Lakeland Industries (LAKE) has seen a significant increase in its stock price following the announcement of its acquisition of the fire and rescue business of LHD Group Deutschland, as well as its Hong Kong and Australian subsidiaries. This $16.7 million cash deal is part of LAKE’s long-term growth strategy to expand its global presence in the fire service market, offering premium firefighter turnout gear, accessories, and laundry services. The acquisition is expected to add $27 million to annual revenue and be immediately accretive to the bottom line, contributing to a projected 34% increase in sales for fiscal 2024.
This acquisition, along with other recent acquisitions by LAKE, is anticipated to help the company achieve high single-digit revenue growth and improve its adjusted EBITDA margin to the high teens within the next five years. Analysts are optimistic about LAKE’s future prospects, especially considering its strong performance in the market compared to the S&P 500. The stock’s recent outperformance is expected to continue following the confirmation of positive Q4 results, which are set to be reported soon.
Julius Juenemann, CFA, equity analyst and associate editor of the Forbes Special Situation Survey and Forbes Investor investment newsletters, has recommended Lakeland Industries (LAKE) as a stock to watch. LAKE’s recent acquisition and overall growth strategy align with Forbes Investor’s focus on identifying undervalued gems with significant upside potential. Subscribers to the Forbes Investor newsletter can access more detailed information on LAKE and other recommended stocks.
Investors and analysts are paying close attention to Lakeland Industries (LAKE) as it continues to strengthen its position in the protective clothing market. The company’s recent acquisitions, including the fire and rescue business of LHD Group Deutschland, are part of its strategy to expand its global presence and increase revenue. With a projected 34% increase in sales for fiscal 2024 and expectations of improved financial performance, LAKE is positioned for continued growth in the coming years.
The $16.7 million acquisition of the fire and rescue business of LHD Group Deutschland is expected to boost Lakeland Industries’ (LAKE) annual revenue by $27 million and contribute to the company’s bottom line. This expansion into the fire service market, along with other recent acquisitions, is part of LAKE’s long-term growth strategy to achieve high single-digit revenue growth and increase its adjusted EBITDA margin. Analysts are optimistic about LAKE’s future performance, with expectations of continued outperformance in the market.
As Lakeland Industries (LAKE) prepares to close the acquisition of the fire and rescue business of LHD Group Deutschland, investors are looking forward to positive results in the company’s upcoming Q4 report. The acquisition, along with recent additions to LAKE’s portfolio, is expected to drive significant revenue growth and contribute to the company’s long-term goals of improving financial performance. With LAKE’s stock showing strong performance in the market, analysts and investors are optimistic about the company’s growth prospects and potential for continued success.
