Chuck Kropp: Temporarily, we would. I don’t think you want to run long-term with a drawn revolver as part of your permanent capital structure. But wouldn’t we go in our revolver to capture a very high IRR short-term opportunity with good visibility into paying it down relatively quickly? Yes, we would.
Brian DiRubbio: Great. That’s it for me. Thanks for all the color.
Chuck Kropp: Yes. Thanks, Brian.
Operator: [Operator Instructions] Our next question comes from the line of Daniel Kutz with Morgan Stanley. Please go ahead.
Daniel Kutz: Hi, thanks, good morning.
Haitham Khouri: Hi, Dan.
Daniel Kutz: So, I just wanted to ask on, I’m sure you guys did get a lot of questions, let me have one on the severe Canada wildfire season, and I appreciate that, maybe you guys kind of revenue and earnings in that market is maybe less of a direct correlation to acres burned than it is in the U.S. because of the way — because of differences in the way that Canada fights wildfires. But I just wanted to ask a question, if there’s anything that you could share that might help us kind of triangulate the potential benefits Perimeter of — the significantly above trend Canada, wildfire season, for a business that has kind of been a mid-high-single-digit business for market for you guys, historically? Thanks.
Haitham Khouri: So, thanks for bringing that topic up, Dan. The first thing I’ll say is how just remarkably proud I’m, and we all are of what our team has done, up in Canada. It’s just unbelievably hectic stressful, yet critical time and they delivered with absolute perfection, didn’t miss a single load. We sent a bunch of production folks from all over the world, teams from Australia, teams from the U.S. Some spend up to two months working in Canada. It’s been an incredible exemplary example of what Perimeter Solutions and only Perimeter Solutions can do for our customers. As far as quantifying it for you, you can look at our last couple of Ks, Canada’s roughly 5% of our business from a revenue perspective. I made a comment in the prepared remarks that our international business more than doubled in the first half.
Clearly Canada was a big part of that. So, revenue growth and profit growth in Canada were excellent in the first half. So, it wasn’t only a story of Canada, Chile was quite strong in the first quarter. Australia was quite strong in the first quarter. We had a lot of good stocking activity in Europe in the second quarter as they stocked up a lot more based on how severe last fire season was. So, there was broad based strength in international, but Canada was clearly the stand out. That said, I guess that, Canada is roughly 5% of our business and as well as it has done this year, it’s just not going to mathematically offset down 70% acres in the U.S.
Daniel Kutz: Got it. That’s all really helpful. Appreciate it. And then maybe just one on capital allocation and I guess specifically M&A. Could you kind of remind us or just high level talk through when you’re building the M&A pipeline? What the kind of puts and takes are in terms of what you’re looking for? Is it geographic expansion, vertical integration, things that might bolster your core retarded suppressing and also Specialty Products businesses or are you guys kind of indifferent to the end market and you’re just looking for opportunities to check the — your target economic criteria and kind of value drivers. How do you think through, those different those different puts and takes when you’re building your M&A pipeline? Thanks.
Chuck Kropp: It is 100% a question of long-term equity value creation. There simply are no qualitative M&A criteria. We’re not looking to get bigger. We’re not looking to get smaller. We’re not looking for synergies. We’re not looking to tell a story. We’re looking for businesses that fit the five target criteria, because if a business fits the five target criteria, we are very confident we can apply the 3Ps playbook and as evidenced by our suppressants margins, which have doubled in 18 months, our Specialty Products margins, where we’ve doubled EBITDA first year. If we find the right business consistent with the criteria, therefore, where the 3Ps playbook is applicable, we can materially increase profitability in a relatively short period of time and do so sustainably and therefore create sustainable equity value and shareholder value. And that’s really the one input into the evaluation.
Daniel Kutz: Great. Understood. Thanks a lot. I’ll turn it back.
Operator: Thank you. [Operator Instructions] As there are no further questions, I will now hand the conference over to Haitham Khouri for closing comments.
Haitham Khouri: Thank you very much, everybody, and talk to everybody in 90 days from now.
Operator: Thank you. The conference of Perimeter Solutions has now concluded. Thank you for your participation. You may now disconnect your lines.
