Dresser-Rand (DRC) was the target of an acquisition by Siemens. Dresser-Rand provides highly engineered, mission-critical equipment to the energy sector. Despite recent underperformance from a new unit business, our patience was rewarded as Siemens saw the value in the recurring aftermarket profit stream and new product innovations. Given limited upside from current levels, we will likely use Dresser-Rand as a source of cash for better ideas until the deal closes in 2015.
From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund 3Q 2014 Commentary.
