The little things matter. This morning, for example, Danaher (DHR) shelled out $2.2 billion for dental-implant maker Nobel Biocare, boosting its already huge, $3 billion dental business. It seems small, but this dental-care business only has a couple of companies going at it and a suite of products that include the top implants, Nobel's strong suit, which gives it a real edge. If Danaher were ever to split up, you would want this dental division for sure, knowing that Henry Schein (HSIC) and Patterson (PDCO) have been terrific stocks.
Or how about TriZetto being bought by Cognizant (CTSH) for $2.7 billion in all cash. This, again, doesn't seem like a big deal but Cognizant's now going to have a terrific health care consultant business and that's a terrific growth area right now. Cognizant needs it because it missed its last quarter and now gets some secular growth. Anything that makes the growth smoother is a win.
We saw this last week when Crown Holdings (CCK) bought Heineken's Mexican packaging business, Empaque, for $1.2 billion, a perfect dovetail to its packaging business. That business meant nothing to Heineken but it can be huge for Crown.
These little deals happen pretty much every day. When they do, you have to file them away because most of them will add immediately to 2015 earnings. These are the kinds of semi-transformative deals that make it so you need to stay focused on lots of companies that do the right thing, whether it be breaking up, like JDS Uniphase (JDSU), or adding on, like Cognizant, Danaher and Crown Holdings.
They are all winners.