Thanks.
Carve out is the correct term. It typically means buying a division from a large company, and taking executives and employees as well. Typically in LMN's case, it would purchase a specific niche division from a larger company. The seller has not focused on the division for some time, as it may not be a significant part of its business. LMN buys it for the cash flow, but also hopes to improve its growth by giving it more focus and attention, and capital. These divisions typically have high customer loyalty and less competition (because the overall market is small). LMN is expected to grow the top-line in the 20%+ range for the next two years. They have $180 mln in cash on the balance sheet against $297 mln in debt. Operating margins are trending in the mid to low teens.