Yang Li: I guess maybe just to follow up on P&R, don’t get enough attention sometimes, but pretty strong growth in the third quarter and year-to-date off of pretty tough comps. It sounds like the market growth drove a lot of that, but just wanted to hear a little bit about some of the other key drivers of growth in the third quarter. Any key products to call out and the sustainability have got a mid-single-digit growth rate going forward, especially against elevated comps? And also maybe on gross margins, if you can comment on it? I mean, pretty strong expansion of 150 bps, driven by a lot of the things you talked about before. Where are you on the P&L gross margin expansion curve?
Matt Trerotola: Yes. Let me talk a little bit about the growth, and I’ll let Ben talk a little bit about the gross margin there. We’re certainly pleased with the consistent 4% growth. As a leader there, we’ve consistently said, we don’t need to outgrow the market by a lot. Our strategic plan is to outgrow the market by a little bit that gets us into that kind of low to mid-single-digit growth range for P&R. And so certainly pleased with the consistent execution there. And it is above market growth. But it’s a healthier market environment than in recent years, and then we’ve also driven nice above-market growth. And really, some of that, we’ve had very nice price performance there that is helping in terms of the growth. Second, our supply chain is very strong.
A lot of great EGX work in the supply chain, and so the consistency of our delivery to customers there in a demanding market has been very strong. And that’s helping us as well. Third, we’ve come up the curve a little bit on innovation in our P&R businesses, and that’s helping the team in terms of giving them some good new products to sell. And then fourth, we continue to demonstrate some growth through MotionMD clinic conversions that is a piece of our share gain in any given year. And so that formula is consistently working and getting us into the kind of growth range that we need from this business. And we’re confident that as we go forward, we have more innovation coming through, at the same time as a little bit of that price will start to roll off.
And so that should be able to keep us in the low to mid-single-digit growth range for P&R on sustainable board path.
Ben Berry: Yes. And Yang, on gross margins, I mean, as Matt indicated, we are taking some ground on price versus cost in terms of our ability and kind of our capabilities now to continue to try to manage through some of the inflationary impacts that we’ve had. We’re seeing some of those pressures roll off a little bit. I mean, we’re getting improved freight rates as we kind of work through the supply chain, that’s helped us a little bit. The other thing is we’ve got some positive mix that’s happening within the P&R business itself. Some of our fastest-growing parts of that business actually are carrying higher gross margins. So we’re getting a benefit of that on top of some of the kind of price cost efforts that we’ve done to continue to drive improvement. So overall, you put those together with all the EGX work that’s constantly in kind of our view. We’ve seen really strong performance there and kind of feel really good about the progress on gross margin and P&R.
Operator: And we will take a question now from Bill Plovanic from Canaccord.
Bill Plovanic: I’m going to focus on strategy. So in terms of M&A, there’s a lot of moving parts going on with interest rates up and valuations down. You got a big deal you’re closing in front of you. I was wondering if you could help us understand, one, what do you think of M&A going into next year, given those dynamics? Two, will you buy anything with Lima kind of until that gets done? Three, what do you think about valuations in the marketplace? Does that shift whether you go into earlier stage assets or later-stage assets? And then lastly, how much actually post the Lima deal and the recent financings do you have dry powder do you actually have to buy anything?
