AMETEK, Inc. (NYSE:AME) Q3 2023 Earnings Call Transcript

David Ridley-Lane: All right. Thank you very much.

Dave Zapico: Next?

Operator: One moment for our next question. Our next question comes from Michael Anastasiou with TD Cowen. Your line is open.

Michael Anastasiou: Thank you. Good morning everyone.

Dave Zapico: Good morning, Michael.

WilliamBurke: Good morning, Michael.

Michael Anastasiou: Back to Paragon, currently, medical-related revenues are about, give or take, 10% of sales. And after this acquisition, it takes you to about 20%. So was just expecting — just curious if you’re expecting to make like a deeper push into medical moving forward? And then what is sort of like the best way to think about balancing M&A dollars for these different end markets as well? Any color would be helpful.

Dave Zapico: Yes. There’s a balance in AMETEK’s end markets. And we really like that balance. That’s why we’re able to navigate some of the challenges that we’re going through right now. So it’s — we plan on keeping that balance. But if there are other attractive areas in the medical space, we’ll certainly look at them. But it’s — we like the balance in the portfolio. And what was your other question, Michael? M&A dollars. I mean we have a distributed operating model. In all of our businesses, we have management teams there that are doing strategy work around their businesses and trying to make their businesses better, and they’re bringing forward acquisition candidates. So we don’t have a predefined number of — predefined amount of capital that we’re going to apply to certain markets.

We’re going to be looking for the deal, the deal quality, the quality of the businesses and if we have the management teams to integrate them. So we have a different viewpoint. We don’t look at it from the top down in terms of dollars allocated per market.

Michael Anastasiou: Got you. That’s helpful. And just kind of diving back into it. So potentially, depending on availability of assets and not such, do you expect total revenues to the medical end market increasing over time? And how do you expect that?

Dave Zapico: Yes. It’s 20% now. It could go 25%, 30%. That wouldn’t bother us, but we plan on having a diversified revenue base.

Michael Anastasiou: Great. Thank you.

Dave Zapico: Thank you.

Operator: Thank you. That concludes the question-and-answer session. At this time, I would like to turn it back to Kevin Coleman for closing remarks.

Kevin Coleman: Thank you, Abigail, and thanks, everyone, for joining us for our conference call. As a reminder, a replay of today’s webcast can be accessed in the Investors section of ametek.com. Have a great day.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.