- The Roper transformation continues, with the company disposing of sixteen industrial businesses to CD&R.
- In addition to the ~$2.6bn of pre-tax proceeds to be received upfront, Roper gains minority interest worth ~$784m, implying potential proceeds of up to ~$3.3bn pre-tax.
- The implied multiple is dilutive relative to where Roper stock trades but provides long-term capital deployment optionality.
- Roper's continued shift toward becoming a tech-focused company should re-rate the stock closer to its higher multiple peers.
For further details see:
Roper Technologies: Near-Term Dilution Vs. Long-Term Capital Deployment Optionality