Nathan Jones: I’ll start my one question and seven follow-ups. I wanted to start on with some questions on pricing. Obviously strong pricing in America, plus 5% and that outside Americas was down 3%. Can you talk a little bit about the disparity in the pricing there? What’s driving that whether it’s just differences in the cost base that’s coming in? Just any details you can give us on the disparity in pricing amongst the regions.
Shyam Kambeyanda: Yes. Thank you for that question, Nathan. Always good to hear from you. So a couple of aspects. We’ve talked about three aspects around pricing. First being around just value pricing and new products coming into the market. Second, we talked about our PLS-led initiative around pricing. And then the third one was inflation based. So, the piece for us in North America, we’re seeing a bit of both PLS and inflation-based pricing. And then in Europe, we are — the rest of the world, we’re focused on net price and so by that, our teams are focused on what’s happening to our cost structure and what are we doing to determine a net price situation to be positive. And so what we loved about both of our regions is that margins expanded in both the Americas and in the rest of the world as a result of that activity and shows the robustness of our process around pricing and discipline that our teams have.
Nathan Jones: Could you then comment on what we should expect from pricing for the remainder of the year, whether it should stay nicely positive in Americas? And if you expect it to continue to be on the headline number negative for the rest of the world?
Shyam Kambeyanda: Yes. let me give that to Kevin. He can go…
Kevin Johnson: Yes, Nathan. So we’ll continue to monitor prices and our net price deal as Shyam mentioned. At this point, our expectation is that we’ll see low single-digit price for the overall business, but we’ll react to anything that happens in the market as we’ve shown, we’re able to do. Our expectation would be that there will be a stronger price in the Americas as we go through the year unless price in the EMEA and APAC region.
Nathan Jones: Great. Thanks for taking my question and follow-up.
Shyam Kambeyanda: Thanks, Nate.
Operator: Your next question comes from the line of Tami Zakaria from JPMorgan. Your line is open.
Tami Zakaria: Hi. Good morning. Thank you, so much and I do want to see quite a good quarter with organic revenue growth considering what some of the welding peers have reported so far. So, congrats on that. So my questions are actually related to the acquisitions. So the first question is, you talked about incremental TAM. Can you size the total addressable market for maintenance and repair and also light automation? And how these new acquisitions would position you to penetrate in these end markets? And what’s really the growth algo of these – both MRO and light automation as you think about these markets over the next few years?
Shyam Kambeyanda: Yes. Thank you, Tami. Yes. We are very pleased with the business performance and really thrilled for our teams as they sort of continue to execute in both the Americas and the rest of the world. In terms of the acquisition, you’re spot on. I think the Sager acquisition in South America gives us greater exposure to the MRO market, which we find to be very stable, less cyclical and better margin profile. So it’s not that you’re sort of expanding into the space our exposure into that space increases as a result of this. We expect the MRO space to be very stable and less cyclical through any cycle of the market. So that’s the piece on Sager. On the SUMIG acquisition, you’re spot on, we love the aspect that it’s light automation.
By light automation we put it in the categories of Cobots, standardized, robotics, nothing that sort of has large material handling as part of the solution set. And we think if you remember our Investor Day deck we had talked about that market equipment and automation being about $12 billion and growing to $17 billion. And our intention is that those are the segments especially on the lighter side where you’re focused on the process solution we think that that’s a great growth market less capital intensive. We’ll have better market characteristics. And obviously, we love the margin profile of that particular side of the business. And that’s what SUMIG gets us. Strong presence in the Americas with some beachheads also in the US.
Tami Zakaria: Got it. Okay. So that’s helpful. And so my follow-up is can you sort of size what type of sales and EPS accretions you expect from Sager and SUMIG in year one? Basically I’m trying to understand what kind of EBITDA are these two businesses making now? And what kind of accretion we can expect?
Shyam Kambeyanda: Yes. Go ahead, Kevin.
Kevin Johnson: Yes. So Tami, Sager we’ve built into the guidance already. It’s around $10 million of revenue we’re expecting for this year. SUMIG for the last 12 months, it generated around $30 million of revenue. Obviously, we haven’t built it into the guidance because it hasn’t closed yet. We expect it to close in the second half of 2024. Once it closes we’ll give some update in terms of what we build into the guidance for this year. The good news is that both of these acquisitions are both EBITDA accretive and both will be EPS accretive in their first year.
Tami Zakaria: Got it. Okay. Thank you.
Operator: [Operator Instructions]
Shyam Kambeyanda: All right. If there are no more questions, thank you for dialing in today and we look forward to talking to you on the next quarterly call.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
