Tuesday, July 1, 2014

The Motley Fool: Up 8%: Does Cooper Companies Inc's Buyout Make Sense?

Eye care specialist Cooper Companies (NYSE: COO  ) is getting into the med-tech merger game and not just as a "me too" player. The company's acquisition of Sauflon Pharmaceuticals carries a steep price at nearly six times forward revenue, but the company is filling out its silicone hydrogel product line and advancing its position in this market by years. Although I continue to believe that Cooper would be well-served to either grow its ob/gyn and fertility businesses or divest them, it's hard to argue with a company generating double-digit growth and double-digit returns on capital.

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Up 8%: Does Cooper Companies Inc's Buyout Make Sense?

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