A more rational conclusion is that they are going to buy some other company or increase their buyback of CVG stock with the cash. Otherwise, I believe that they would have returned some of the cash to shareholders. They already spent $178M on stock repurchase this TTM. On July 31, 2012 they increased the current authorization to purchase outstanding shares to $250 million. $120M was repurchased for the 3Q 2012. I'll bet that the 4Q buyback will be in the same range with a new authorization announcement coming soon. They are on the road to a very aggressive buyback program.
Of course they are doing buybacks. They have been doing that for a long time. Why would they buy another company? If you've followed CVG, you know that they have been selling off divisions for the last few years to simplify operations! Buying a company would be contra to their strategy. If you've followed the industry, you'd know of benchmark companies like APAC that was in a very similar position that was bought out. I enjoyed that takeover. Did you? Not sure that your analysis is "more rational"; probably just more about stating the obvious.