Ann: GUD Completes Institutional Entitlement Offer, page-4

Thanks for the post. I feel a little less silly now. Mind you I still have a long way to go. I didn't get a chance to look at this until this morning but, yeah, every way I come at this it the takeover seems to represent accretion - enterprise value measurements, potential EPS numbers going forward, ROE etc, not to mention that they seem to believe that the 2022, before adding in the new stuff, will be solid.

I can think of three things that make me ponder a little despite the arithmetic suggesting some immediate accretion:

• Purchasing the business from (in part at least) a private equity firm
• This is a very large bite even for GUD who are used to performing takeovers
• Covid and lockdowns have ever so slightly made tow bars etc a cyclical product and, if so, this purchase may have been made at the top of the cycle

We're seeing quite a high turnover today. In any case, if there's a perceived issue among the big stake holders, I doubt we'll find it inside the numbers.
My inclination is to change my sentiment to BUY but I'll wait and see if anything comes out that I'm missing.
Perhaps mentioning the fact that the new business will be equally at home with EV's has caused investors to remember the fact that the nature of car parts will change in due course.