East Aurora, NY-based Moog Inc. (NYSE:MOG-A) has purchased the Pentair (NYSE:PNR) subsidiary Aspen Motion Technologies, Moog announced Thursday, paying $34 million to acquire the motor parts manufacturer.
At a purchase price just under 1.0-times Aspen's $36 million in annual sales, Moog paid a small premium to its own 0.8 P/S ratio. However, Moog Components Group President Larry Ball explained that the company needed Aspen to fill "a product and technology gap for our existing customer base."
Financially, Moog says the purchase will be neutral to its 2013 earnings per share.
Moog shares traded down 1.3% Thursday, closing at $45.80.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Moog and Pentair. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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