Dave Zapico: Yes, they are going very well. I mean Bill and I have met with both of the acquisition integration teams and really positive. Just to recap a little bit, RTDS provides real-time power simulations used by utilities and various strategic acquisitions that broadens our power instruments businesses with differentiated testing and measurement and simulation capabilities. So, it’s attractive position and high growth market. Really good team, I mean, just experts in the field. And it’s kind of fun interacting with them. And they’re really adopting AMETEK and feel good about that one. Same with Navitar, Navitar is in some good growth markets. The optics market is doing quite well with us. And even in the semiconductor space, where they play their main customers is one that’s very differentiated and has unique capabilities.
So, that along with Life Sciences along with machine vision, there’s a very good outlook there. And that business is a little bit different as being integrated into our Zygo business. So, it has new capability for Zygo. Much needed capacity for Zygo and the integration is going very well.
Will Jellison: Great, thank you. And then, as a follow-up, staying on the theme of M&A, you mentioned your pipeline is very strong at this juncture. And I’m curious about what your observations are in the market overall, with respect to the level of competition for assets and where multiples seem to be moving in your observation?
Dave Zapico: Right, yes, I think with the interest rates increasing, and with money, not as free as it was, is actually an advantage to us. So, we have a good pipeline and a good balance sheet. And we remain very active with a solid pipeline of deals, the valuations have come in a bit. We’re looking at some quality assets, though. So, they’re still a bit elevated from historical levels, but no doubt they’ve come in. And important for us in our pipeline, we have a very disciplined acquisition process. And these deals are going to meet our traditional financial hurdles, which is primarily a return on invested capital of 10% by the third year of ownership. These are important thresholds for us as we want to ensure we’re providing a strong level returns on the capital we deploy for our shareholders.
And that’s been a hallmark of AMETEK’s acquisition program for a long period of time. We do this all with cash and debt, don’t use equity. And there’s a bigger pipeline right now than has been historically because when there’s less, less money around the system to bid up deals. So, we feel pretty good with where we’re at. And if we do something, and I believe we will be talking to you about deals in the near future, they’re going to be, they’re going to meet all of our traditional hurdles. And we’re committed to have an investment grade credit rating, and we got plenty of about $2.3 billion of capital and financing capacity available. So, in this environment, discipline is going to be a key word as it’s always been for AMETEK. But have been very key in terms of executing our forward-looking M&A strategy.
Will Jellison: That’s great. Thank you for taking my questions.
Dave Zapico: Yes, okay.
Operator: And our next question today comes from Andrew Obin with Bank of America Merrill Lynch. Please go ahead.
David Ridley-Lane: Hi, this is David Ridley-Lane on for Andrew Obin.
Dave Zapico: Hi, David.
David Ridley-Lane: Good morning. How much of the one-time costs around supply chain disruptions last year, the higher freight costs, the spot buys and electronics, all those things fall-off in 2023? I’m guessing I’m wondering is this a meaningful tailwind in kind of your forecasts?