Dumping Distribution, Barnes Group Is Free To Fly On Aerospace And Industrial Themes

Feb 25 2013, 04:40 by: Alan Brochstein | about: B, includes: MSM

Barnes Group (B) is a somewhat under-the-radar industrial company that blew away the market on Friday with its announcement that it is exiting most of its distribution business through a transaction with MSC Industrial (MSM) in which it will receive $550mm for its Barnes Distribution North America (BDNA) unit. Fellow SA contributor Stephen Simpson shared a great perspective from the MSM vantage, and, given the big jump on Friday in B, I wanted to evaluate the transaction and see if this clear catalyst could lead to a bigger bounce from B, which rallied 14.8% in response, posting a 52-week high. The rich sale price (29% of the enterprise value for 21% of the operating...