Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of PolyOne (NYS: POL) jumped 10% today after announcing earnings and a big acquisition.
So what: In the third quarter, revenue grew slightly to $740.2 million and earnings per share $0.33 on an adjusted basis. Revenue was short of estimates but earnings were slightly better than expected.
The other big news is the company's $246 million offer to buy Spartech (NYS: SEH) . The company offered $2.67 per share in cash and 0.317 PolyOne shares for each Spartech share, which amounts to $8.47 per share at the current price.
Now what: The acquisition will bring PolyOne into new markets and is viewed as a relatively good value. The company paid about 7.5 times trailing EBITDA and it is expected to add to earnings first quarter next year. The slow growth isn't enough to make me a buyer today, but we'll see next year if this and other acquisitions will jump-start PolyOne's growth.
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The article Why PolyOne's Shares Popped originally appeared on Fool.com.
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