While we are waiting for more details regarding CMP acquisition, worth looking at the impact of these 2 acquisitions :
- the most obvious impact is, of course, the large earning accretive impact (21 % for WWS and 22 % for CMP Engineering),
- as discussed in the other thread, Vysarn will probably have a net debt situation (around 15 m$) after these 2 acquisitions, but it should be rapidly paid back given that the company had already a large free cash flow before these 2 acquisitions, which has probably further increased (good profitability for WWS and CMP, while these businesses seem to have a low Capex requirement),
- the other main effect is that, it significantly dilute the effect of their main business, which is considered as quite cyclical. So it probably reduces Vysarn's risk, which could justify a higher rating.
VYS Price at posting:
47.5¢ Sentiment: Buy Disclosure: Held
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