Headlines -- and stock-price movements -- in the industrials sector were dominated by companies making splashy acquisitions on Monday. Stocks broadly advanced on a report by the Institute for Supply Management that its Purchasing Managers Index, a gauge of demand for industrial products, had indicated growing purchasing activity for the first time in four months, suggesting optimism in the manufacturing sector. While the Dow Jones Industrial Average ended the day up nearly 0.6%, a few companies announcing high-profile acquisitions and mergers fared better.
The day's biggest gainer was specialty ceramics manufacturer Ceradyne, which rose 43% after the announcement that it will be acquired by diversified technology and manufacturing giant 3M
Diversified industrial manufacturer Honeywell
Famously fractious Tyco International
The flow control business was immediately acquired by Pentair, as previously agreed by shareholders at both companies, with the resulting entity, Pentair Ltd.
Shares of Pentair were down more than 4.5%, probably because of the structure of the deal: Tyco investors automatically received shares in Pentair Ltd., so investors who remained primarily interested in Tyco's security business may have sold their Pentair shares simply to cash out. This may present a buying opportunity for those interested in Pentair's water and industrial products business.
Finally, shares of 3D Systems
The 3D Systems acquisition highlights ongoing consolidation in a highly disruptive field. Amazon.com founder Jeff Bezos believes so strongly that 3-D printing will change the way we produce goods that he's invested millions in 3-D printing startups. The Motley Fool has put together a video report showing investors how to profit from this new industrial revolution. This report is free, but it won't be available forever, so get your copy today.
Fool contributor Daniel Ferry owns shares of Amazon.com, 3M and 3D Systems. The Motley Fool owns shares of Ceradyne and Amazon.com. Motley Fool newsletter services have recommended buying shares of 3M, 3D Systems, Amazon.com, and Covidien and creating a diagonal call position in 3M. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.