(Click here for video linked to a searchable transcript of this Mad Money segment)
"There are two things that almost always send a stock higher: takeovers and breakups," Cramer said. "This stock gives you both."
"I'm talking about Agilent," the Mad Money host explained; a company that can largely be divided into four divisions—electronic measurement, life sciences, chemical analysis and diagnostics.
Scenario #1: Break-Up
"I see Agilent as a clear cut case where the parts are worth more than the company as a whole," Cramer explained.
The Mad Money host believes that Agilent's life science, chemical analysis and diagnostics divisions all deserve much higher valuation. However, he believes the Street is reluctant to award a higher valuation because the company's electronic and measurement division is a much more cyclical business. Therefore it's vulnerable to economic weakness.
"If Agilent were to split itself into two; 1) a cyclical electronic measurement play and 2) a secular growth oriented life sciences and diagnostics play, then I think the standalone life sciences business would really take off," Cramer said.
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The Mad Money host has crunched some numbers. Here's what he's come up with:
Looking at other deals in the same space, Cramer said Thermo Fisher agreed to pay four times sales in its acquisition of Life Technologies and Hologic agreed to pay six times sales for its acquisition of GenProbe.
"If you were to give Agilent's life science, chemical analysis and diagnostics the same price to sales multiple that Thermo Fisher is paying for Life Technologies, then you'd have a business that's worth $14.3 billion," Cramer said. "Agilent's current market cap is just $15.7 billion, so you're practically getting the more cyclical electronic measurement business for free."