Originally Posted by
billkiapi
That will change dynamics quite a bit. A2M is a business that has been built off contract manufacturing- essentially outsourcing capital risk of product plants, and outsourcing production and supply risks (fixed/variable cost issues). It's helped A2M amass a huge cash pile.
Buying SML makes a whole lot of vertical integration sense, but they'll quickly need to build production management talent in house. A well run production plant is a wonderful thing, but it's easy to have a badly run production plant which sucks cash out of the business.