The deal brings with it potential costs savings of $100 million in the first year and $80 million in the following two years.
According to Cramer, Republic has a 18% long-term growth rate and has the potential to be a $40 stock.
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Cramer said that the stock is currently up 3% off of Goldman Sachs' recommendation and that investors should wait a week before buying any shares.
A New Tech Guy
Cramer introduced John McGlade, chief executive officer of
Air Products(APD Quote - Cramer on APD - Stock Picks) to the show.
McGlade told Cramer that APD is doing well enough that it can continue to raise prices despite the tough economic times. He also said the company had recently issued patents in the area of lithium ion batteries, which may be the future of hybrid vehicles.
While it is working on that technology, it is currently supplying oxygen to
Duke Energy(DUK Quote - Cramer on DUK - Stock Picks) for the gasification of coal to make power.
Cramer likes McGlade because he is a "new technology guy," and that investors should "buy APD."
Final Notes
Cramer said investors should buy
Research in Motion(RIMM Quote - Cramer on RIMM - Stock Picks) on the pullback.
Am I Diversified?
The first caller asked about
Costco(COST Quote - Cramer on COST - Stock Picks),
Raytheon(RTN Quote - Cramer on RTN - Stock Picks),
Joy Global(JOYG Quote - Cramer on JOYG - Stock Picks),
Proctor & Gamble(PG Quote - Cramer on PG - Stock Picks), and
Chesapeake Energy(CHK Quote - Cramer on CHK - Stock Picks).
Cramer liked his diversification, saying it was "well-played."
The next caller had
Alcoa(AA Quote - Cramer on AA - Stock Picks),
Apple(AAPL Quote - Cramer on AAPL - Stock Picks),
Harley Davidson(HOG Quote - Cramer on HOG - Stock Picks),
Ford(F Quote - Cramer on F - Stock Picks), and
Solarfun(SOLF Quote - Cramer on SOLF - Stock Picks).
Cramer noted Solarfun is a "spec," and Apple is like "playing with fire." He also said the caller should dump Ford and pick up Raytheon.
TheStreet.com Staff
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