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Accretive Acquisition

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Accretive Acquisition
An acquisition that will increase the acquiring company's EPS.

Notes:
As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. In essence, the price paid by the acquiring firm is smaller than the addition to its EPS.

As a general rule, an accretive merger or acquisition occurs when the P/E ratio of the acquiring firm is greater than that of the target firm.


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, "We are pleased to have closed on this accretive acquisition.
The increase is primarily due to our accretive acquisition of an interest in the Chambers power facility, demonstrating the ongoing execution of our strategy to support and grow distributions over time.
And as part of our plan, the Company plans to utilize a portion of the financing proceeds for an accretive acquisition which is currently under preliminary evaluation.
 
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