BE Aerospace announced yesterday that it was acquiring Blue Dot Energy Services for $75 mm. Blue Dot is an energy services company that provides parts distribution, rental equipment, and on-site services to the industry. BE Aerospace is currently experiencing strong growth from its very cyclical commercial aerospace business, however the company has been looking to diversify into the oil and gas as others in the industry have done (i.e. Precision Castparts Corp.). The goal is to profit heavily from these cyclical swings in the aerospace market, however also diversify that risk to an extent during the troughs. With close to $800 billion in commercial aircraft backlog between the big 3, BE Aerospace is poised for strong growth in its aerospace business for at least the medium-term. We reiterate a HOLD rating as recently the stock has become close to fairly valued and believe now is not the time to enter new positions in the stock.