RE:Advantages of recent acquisitionI have one more advantage of the recent acquisiton. Its my personal opinion.
KEY management had the opportunity to buy the 50% interest in KAPS. They declined to do so.
This was amazing.
KAPS has two componenets. The fee charged is one. The profit is spread over a 20 or 30 year amortization. The big money comes from KEY's existing plants that provide value added services. Increased capacity at these locations involve limited addition cost with maximum benefit going to KEY's bottom line. This was the correct choice and in my opionion, management did a great job.
The recent acquisition added considerable value to KEY. Managements disciplined approach promotes shareholder value. This is something shareholders should celebrate. I'm holding onto my shares.