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Leucadia (LUK) to Sell Conwed Interest to Schweitzer-Mauduit
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Leucadia National Corporation recently announced that it has entered into an agreement to sell 100% of its interest in Conwed Plastics to Schweitzer-Mauduit International, Inc. .
After the release of third-quarter 2016 results on Nov 2, Leucadia National Corporation’s shares yielded 28.4% return, outperforming the return of 10% recorded by the Zacks categorized Diversified Operations industry.
As revealed, Conwed Plastics is a wholly owned subsidiary of Leucadia and is one of the leading light-weight plastic netting manufacturers worldwide. Conwed Plastics’ products are used for various applications in agriculture, automotive, building and construction, consumer products, filtration, hygiene, medical and packaging markets. Exiting the third quarter, Leucadia had net investment of $104 million in Conwed.
Per the terms of the agreement, Leucadia is likely to receive approximately $295 million in cash upon the completion of the divestment in Jan 2017. In addition, it might receive certain earn-out payments for five years. Upon closure, the company anticipates realizing pretax gain of approximately $175−$185 million (excluding the amount related to earn-out payments).
Leucadia, with a market capitalization of $8.5 billion, currently sports a Zacks Rank #1 (Strong Buy). The company is primarily engaged in beef processing, manufacturing and real-estate activities, along with various other investment-related affairs in the U.S. Over the last 60 days, the Zacks Consensus Estimate for the stock has increased 10% to 22 cents for 2016.
A couple of other stocks worth mentioning in the diversified operations industry include Macquarie Infrastructure Corporation and Hitachi, Ltd. (HTHIY - Free Report) . While Macquarie Infrastructure sports a Zacks Rank #1, Hitachi carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Macquarie Infrastructure Corporation’s earnings estimates for 2017 improved over the last 60 days. It has a positive earnings surprise of 2% for the third quarter of 2016.
Hitachi, Ltd. reported better-than-expected results in the last quarter, with a positive earnings surprise of 263.33%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 have improved over the past 60 days.
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Leucadia (LUK) to Sell Conwed Interest to Schweitzer-Mauduit
Leucadia National Corporation recently announced that it has entered into an agreement to sell 100% of its interest in Conwed Plastics to Schweitzer-Mauduit International, Inc. .
After the release of third-quarter 2016 results on Nov 2, Leucadia National Corporation’s shares yielded 28.4% return, outperforming the return of 10% recorded by the Zacks categorized Diversified Operations industry.
As revealed, Conwed Plastics is a wholly owned subsidiary of Leucadia and is one of the leading light-weight plastic netting manufacturers worldwide. Conwed Plastics’ products are used for various applications in agriculture, automotive, building and construction, consumer products, filtration, hygiene, medical and packaging markets. Exiting the third quarter, Leucadia had net investment of $104 million in Conwed.
Per the terms of the agreement, Leucadia is likely to receive approximately $295 million in cash upon the completion of the divestment in Jan 2017. In addition, it might receive certain earn-out payments for five years. Upon closure, the company anticipates realizing pretax gain of approximately $175−$185 million (excluding the amount related to earn-out payments).
Leucadia, with a market capitalization of $8.5 billion, currently sports a Zacks Rank #1 (Strong Buy). The company is primarily engaged in beef processing, manufacturing and real-estate activities, along with various other investment-related affairs in the U.S. Over the last 60 days, the Zacks Consensus Estimate for the stock has increased 10% to 22 cents for 2016.
LEUCADIA NATL Price and Consensus
LEUCADIA NATL Price and Consensus | LEUCADIA NATL Quote
A couple of other stocks worth mentioning in the diversified operations industry include Macquarie Infrastructure Corporation and Hitachi, Ltd. (HTHIY - Free Report) . While Macquarie Infrastructure sports a Zacks Rank #1, Hitachi carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Macquarie Infrastructure Corporation’s earnings estimates for 2017 improved over the last 60 days. It has a positive earnings surprise of 2% for the third quarter of 2016.
Hitachi, Ltd. reported better-than-expected results in the last quarter, with a positive earnings surprise of 263.33%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 have improved over the past 60 days.
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 >>