Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of industrial parts maker Altra Holdings
So what: Altra's fourth-quarter report beat earnings and revenue estimates, but the company also announced an agreement to acquire German rival Danfoss Bauer's gearmotor division -- and $75 million of new convertible debt to finance the deal. That's a lot of news to digest at once, and it took Mr. Market a while to sort it all out.
Now what: The Bauer deal is expected to add to Altra's earnings right from the start and the division produced a healthy $104 million in sales last year. In the highly fragmented parts industry, this cements Altra's position as a revenue leader ahead of Kaydon
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