Originally Posted by
BlackPeter
Depends on how you measure "big". Their market cap seems to shrink faster than they are able to grow by acquisition :p.
On the other hand ... at face value the transaction sounds o.k: buying 80% of $2.4" EBITDA (last FY) for $12.5". Just wondering why they only referred in the announcement to the last financial year (instead of say a 5 year range). Do the others years look less favourable? Could be as well that Lanotec stretched itself a bit when building these new premises in Rolleston - why else would they want to sell the goose laying the golden eggs?
Anyway - time will tell. Might be a gain for both, lets see what the markets think ...