Reece post-Morsco, page-13

it may be an example of Reece

"buying growth"
"diversifying" out of the aussie housing cycle
"hedge" against A$ falling substantially

or another phase of the moon .....(acquired the company from private equity)

what should be obvious - is that at current mk prices - the stock aint cheap .....

at the issueance price - it is OK value.

does anyone have any ideas as to :

1. does Morse have any products that are "exclusive" in the US market - that could be brought to the Oz market ?
2. does M have any scale buying power that could be combined with Oz - and so get a better deal for the combined entity ?
3. as Madam stated - they are two different types of businesses ....... - which bits of both could be combined to create a better "whole" (ie inventory control in Oz ??????)
4. getting data on the acquired entity's operating companies (a classis roll-up) is difficult ........any data on margins pre-post being acquired by the PE company ?(ie is there any obvious "fat" that could be trimmed) ????


rgds
Value_Hunter