The stock market slammed foam clog manufacturer Crocs (NASDAQ: CROX) with a double-digit percentage drop in share price after it announced its intention to buy out Italian plastic shoe company Hey Dude on Dec. 23. Shares fell more than 16% at one point and ended trading down about 10% , despite the company saying the deal will be accretive to revenue.
The market's initial take suggests it isn't too happy with the deal, but there are at least three reasons Crocs decision may have been a smart one.
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For further details see:
Did Crocs Trip Over Its Own Feet With This $2.5 Billion Acquisition?