As the home improvement company merges with its homebuilding arm, Merrell’s stock price is up more than 10% this year.
This makes Merrell one of the top performers in the S&P 500 index of home improvement companies.
But as the company is merging with its large homebuilding division, its stock is down more than 13%.
Why are the shares down?
According to S&s numbers, mergers and acquisitions in the homebuilding sector account for about 3% of Merrells revenue, but the company has had significant stock-market activity in recent years.
Merrell has had more than $2 billion in total transactions since 2011, with the majority of those transactions coming during the past two years.
According to Merrell, those transactions accounted for about $1.4 billion of Merris revenue during that period.
That means the company’s stock has been in a steady decline since mergers took place.
That decline has been especially steep in recent months.
On November 18, Merris shares fell more than 6% after the company reported a loss of $2 million in the third quarter of 2016.
That was just after Merris said it would acquire a major manufacturer in the United States, with Merrell paying $5 billion for the American Home Products Corp. (AHP).
The deal is a major win for Merrell.
After acquiring AHP, Merriers share price is currently up more over 14% this week, though the stock has remained mostly flat for the past year.
At this point, Merril has about $2,700 in cash and $1,700 of home improvements assets.
However, the company hasn’t been able to generate much revenue in recent quarters, as it reported a $1 million loss in the fourth quarter.
In that quarter, the shares had declined nearly 5% since merging with its largest homebuilding business.
The deal will create the largest home improvement deal in the country, according to Merris.
According for Merris’ CEO, Bob Smith, the deal will help Merriys revenue.
Merriests revenue in 2016 was about $5.5 billion, according Merriess revenue statement.
The company plans to combine its homeimprovement and construction businesses, Smith told The Wall Street Journal last month.
“We are looking at an additional $6 billion to $7 billion of revenue,” Smith said at the time.
“Thats the largest-ever combination of both business.”
In addition to the merger, Merrill is also making other moves that could boost its stock price.
The mergers also mean Merrell will have a major new competitor in the sector.
In February, Merrill bought homebuilder HVAC company Home Depot for $3.2 billion.
The purchase has led to rumors that the Merrell company could have a rival in the construction sector.
As a result, some investors have expressed concern about the merger.
“It is likely that Merriill will be able to control the construction of its facilities to a certain degree,” said Andrew Tuchman, chief investment officer at investment firm Hahnemann & Hohenheim, in a note last month to clients.
“But it may not be able as effectively to control prices or rents.”