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Albemarle Wraps Up Chemetall Unit Sale to BASF for $3.2B
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Specialty chemicals maker Albemarle (ALB - Free Report) has completed the sale of its Chemetall Surface Treatment unit to German chemical giant BASF for around $3.2 billion. The deal was announced in Jun 2016.
The proceeds from the transaction are subject to adjustments for certain pension obligations, cash, indebtedness of the business and working capital.
Chemetall is a leading supplier of surface treatments for metal, plastic and glass substrates. The business was acquired by Albemarle in Jan 2015 as part of its $6.2 billion acquisition of Rockwood Holdings, Inc. The sale is a part of Albemarle's sustained commitment to boost shareholder value by investing in the growth of its high priority businesses.
Albemarle is selling non-core businesses and assets to boost growth opportunities and focus on its key businesses. The company, in Feb 2016, also wrapped up the sale of its mineral flame retardants and specialty chemicals businesses to Huber Engineered Materials – a division of leading global manufacturer of flame retardant additives, J.M. Huber Corporation.
Moreover, in Jan 2016, Albemarle completed the divestiture of the tribotecc metal sulfides business to Treibacher Industrie AG, a leading player in the chemistry and metallurgy sectors. The divestment advances Albemarle's strategic plan of focusing on its core bromine, lithium, catalysts and surface treatment businesses.
Albemarle’s shares have gained 60.6% year-to-date, outperforming the Zacks categorized ‘Chemicals-Diversified’ industry’s gain of 16.8% over the same period, partly reflecting its forecast-topping earnings performance over the trailing four quarters.
Albemarle's adjusted earnings of 91 cents per share for third-quarter 2016, topped the Zacks Consensus Estimate of 81 cents. The company raised its earnings outlook for 2016 factoring in favorable performance across its Lithium and Refining Solutions segments.
Albemarle is taking steps to strengthen its lithium business. The company, during the third quarter, agreed to buy the lithium hydroxide and lithium carbonate conversion assets of Jiangxi Jiangli New Materials Science and Technology Co. Ltd. The acquisition will allow the company to supply premium lithium salts to an expanded global customer base.
Albemarle also entered into a deal with Bolland Minera S.A. that provided the former exclusive exploration and acquisition rights to a lithium resource in Antofalla (within the Catamarca Province of Argentina), which could prove to be the biggest lithium resource in Argentina.
Albemarle currently carries a Zacks Rank #3 (Hold).
FMC has an expected earnings growth of around 14.3% for the current year.
Chemours has an expected earnings growth of around 60.1% for the current year.
Innophos has an expected earnings growth of around 51.4% for the current year.
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Albemarle Wraps Up Chemetall Unit Sale to BASF for $3.2B
Specialty chemicals maker Albemarle (ALB - Free Report) has completed the sale of its Chemetall Surface Treatment unit to German chemical giant BASF for around $3.2 billion. The deal was announced in Jun 2016.
The proceeds from the transaction are subject to adjustments for certain pension obligations, cash, indebtedness of the business and working capital.
Chemetall is a leading supplier of surface treatments for metal, plastic and glass substrates. The business was acquired by Albemarle in Jan 2015 as part of its $6.2 billion acquisition of Rockwood Holdings, Inc. The sale is a part of Albemarle's sustained commitment to boost shareholder value by investing in the growth of its high priority businesses.
Albemarle is selling non-core businesses and assets to boost growth opportunities and focus on its key businesses. The company, in Feb 2016, also wrapped up the sale of its mineral flame retardants and specialty chemicals businesses to Huber Engineered Materials – a division of leading global manufacturer of flame retardant additives, J.M. Huber Corporation.
Moreover, in Jan 2016, Albemarle completed the divestiture of the tribotecc metal sulfides business to Treibacher Industrie AG, a leading player in the chemistry and metallurgy sectors. The divestment advances Albemarle's strategic plan of focusing on its core bromine, lithium, catalysts and surface treatment businesses.
Albemarle’s shares have gained 60.6% year-to-date, outperforming the Zacks categorized ‘Chemicals-Diversified’ industry’s gain of 16.8% over the same period, partly reflecting its forecast-topping earnings performance over the trailing four quarters.
Albemarle's adjusted earnings of 91 cents per share for third-quarter 2016, topped the Zacks Consensus Estimate of 81 cents. The company raised its earnings outlook for 2016 factoring in favorable performance across its Lithium and Refining Solutions segments.
Albemarle is taking steps to strengthen its lithium business. The company, during the third quarter, agreed to buy the lithium hydroxide and lithium carbonate conversion assets of Jiangxi Jiangli New Materials Science and Technology Co. Ltd. The acquisition will allow the company to supply premium lithium salts to an expanded global customer base.
Albemarle also entered into a deal with Bolland Minera S.A. that provided the former exclusive exploration and acquisition rights to a lithium resource in Antofalla (within the Catamarca Province of Argentina), which could prove to be the biggest lithium resource in Argentina.
Albemarle currently carries a Zacks Rank #3 (Hold).
ALBEMARLE CORP Price
ALBEMARLE CORP Price | ALBEMARLE CORP Quote
Stocks to Consider
Better-ranked companies in the chemical space include FMC Corp. (FMC - Free Report) , The Chemours Company (CC - Free Report) and Innophos Holdings Inc , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC has an expected earnings growth of around 14.3% for the current year.
Chemours has an expected earnings growth of around 60.1% for the current year.
Innophos has an expected earnings growth of around 51.4% for the current year.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>