It’s been a busy day of news for Hudson Technologies (NASDAQ: HDSN), with the stock soaring as Wall Street cheers the company’s accomplishments. For starters, Pearl River, New York-based Hudson said it is buying Airgas, Inc. subsidiary and industrial gas supplier and reclaimer Airgas-Refrigerants in a deal valuing the company at about $220 million. Second, the company reported earnings from the second quarter that beat analysts on both the top and bottom lines.
Hudson, a provider of solutions for optimizing performance and enhancing reliability of commercial and industrial chiller plants and refrigeration systems, sees many benefits to bringing Airgas-Refrigerants under its umbrella, including widening its customer network and domestic footprint and strengthening its distribution abilities. The buyout also better positions Hudson for a shifting industry dynamic away from hydrochlorofluorocarbons to hydrofluorocarbons.
Trailing-12-month revenue on a pro forma basis for the combined company would be about $250 million. Hudson management estimates the acquisition will be accretive to earnings one year after closing the transaction.
Hudson is funding the buyout through cash on hand, a lending facility and a new term loan.
As for performance during the quarter ended June 30, 2017, Hudson posted an all-time high in revenue at $52.2 million, up 51 percent from the year prior quarter. The spike in revenue was mainly attributed simply to higher prices and volumes of certain refrigerants sold. Gross margin perked up to 33% from 30% a year earlier.
Net income from $4.8 million, of 14 cents per share, in Q2 2016 to $8.5 million, or 20 cents per share, in the recent quarter.
Wall Street was expecting revenue of $46.3 million and profits of 16 cents per share.
Shares of HDSN were up more than 19% at noon Eastern at $9.48 and have printed as high as $10.40, marking the first time Hudson shares have been over $10 each since 1997. The jump in value puts HDSN as one of the best performing NASDAQ-listed stocks so far on Thursday.
