Norwest was also hyperactive again, announcing or closing 19 smaller acquisitions since the start of 1997, for banks, consumer finance companies or specialized lenders. Honeywell has acquired nine companies since the start of 1997. Other companies that have been hot on the acquisition trail over the past year include Regis, ReliaStar, Pentair, Valspar, Ecolab, TCF, Ceridian, Tower Automotive and Dura Automotive. Norstan, which emerged as one of the new list's stars this year with, an 82 percent gain in market value, has entered a growth mode partly by acquiring two technology consulting firms since 1996. For sure, the urge to merge is not an unmitigated blessing.
Companies can pay too much for acquisitions.
Some of the deals dilute significantly the equity of existing shareholders. Many mergers don't work out over the long haul, and sometimes company payrolls get cut too deeply after the deals close. Yet many failures don't get the attention commanded by the typically rosy announcements of these deals. And Minnesota companies aren't just acquirers. Acquisitions took five companies, all in the list's bottom 60 firms, off this year's list.