Although investment writers often seem to hate growth-by-acquisition roll-up stories, there's a reason that they keep popping up in the market – when executed properly, they can work very well. Investors can look at stories as varied as Danaher, BB&T, or Helen Of Troy (Nasdaq: HELE) and see a similar theme of success through repeated M&A activity.
It may be unfair to suggest that Summer Infant (Nasdaq: SUMR) has only grown by virtue of folding in smaller makers of kid-oriented products, but the fact remains that the company is what it is today because of deals. Looking out a few years, though, it's not too hard to see how Summer Infant can grow itself into a real contender next to Mattel's (NYSE: MAT) Fisher-Price or Newell Rubbermaid's (NYSE: NWL) Graco business. Consequently, the company's downward revision in Q4 results is upsetting, but not the end of the story.
Read more here:
Summer Infant: An Early Stage Growth Story
No comments:
Post a Comment