pay attention to sb2000 tox is flying toot, page-14

Yep,
good post jimmy,
i lot of what you say makes sense,but it was always going to be a struggle for tox to stay in the high margin end of the spectrum, if they want to diversfy, they are going to have to compete in the lower margin stuff.
This is also the first purchase for tox under the new chairman, but you have to think the old chairman had his hands on this deal, that said i have met both MD and retired chairman and until i see them stuff up. i will back them to make a go of it.
Do not forget that they can back out at the end of due diligence, in the end they are not paying a lot for the goodwill, and if it can churn out 8 million ebitda, and assuming you loose say 60% to depr.,interest and tax it still going to be bought on somewhere between 7 to 8 times p.e. ,which makes it well and truely eps accretive.
Maybe this purchase will turn out to be the real foothold that they need on the eastern seaboard and could be a company transformer.