SMM

SMM: to acquire SLP Engg, a subsidiary of the Smulders Group, for £2.5m (NTA of SLP is £0.7m). SLP, based in the UK, will be renamed Sembmarine SLP. Through this acq, SMM will now have a footprint in the UK, providing synergistic support and reaching out to its North Sea clientele. It also enhances SMM’s objective of becoming the leading UK supplier of EPC services to the offshore energy mkt. While the acq size is small, the news flow continues to point to a buoyant offshore and marine outlook, which bodes positively for KEP and SMM. Key catalysts for shares prices of both stocks continue to be new order wins. SMM trades at 15x P/E. Street has 22 Buys, 1 Hold and 1 Sell with avg consensus TP at $5.91.