We also exited some positions in 2016. When MTS Systems (MTSC, Financial) announced the acquisition of sensor maker PCB Group for $580 million, we decided it was time to exit the stock. In addition to our concerns about execution of the current business, we did not believe the strategy behind the acquisition was sound. It added to the company’s existing sensor business, where the company does not enjoy a strong competitive advantage, it diluted MTS’ durable competitive advantage in its core test business, and added substantial leverage to the balance sheet.
From Mairs & Power's Growth Fund fourth quarter 2016 commentary.
