What does accretive mean in finance?

In both finance and in general lexicon, the term "accretive" is the adjective form of the word "accretion", which refers to gradual or incremental growth. For example, an acquisition deal may be deemed accretive for the absorbing company, if that deal contributes to an increase in earnings per share .

What is accretive to STH?

accretive to sth It expects the acquisition to be accretive to earnings in the first year. In the repeated routine of this sort of interaction was the accretive process of cultural transformation. Further accretive expansion along this long east-west street is re-ected in other plan units, stretched out along its length.

What does accretion mean in business?

Accretion means that something grows by adding to it. In business, it can happen organically, as a company expands its operations. Or it can happen through accretive investments, which add to the company’s income and profits. Internal accretion can happen when a business reinvests its earnings into income-producing expansions.

How Accretive is the acquisition?

The acquisition is expected to be earnings accretive from the third full-year following principal closing, i.e. the first full steady-state year following integration. The transaction, subject to standard closing conditions, is expected to close in the fourth quarter and to be neutral to earnings in 2008 and accretive in subsequent years.