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DuPont: Hygiena to Buy Food Safety Diagnostics Business
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DuPont’s (DD - Free Report) Nutrition & Health business announced that its global food safety diagnostics business will be acquired by Hygiena, a Warburg Pincus portfolio company. The buyout will include all of DuPont Diagnostics business assets, including the BAX and RiboPrinter Systems and related test kits, a global and technically trained sales, R&D and manufacturing organization, and in-house production capacity. However, the business will retain its name – Qualicon – after acquisition by Hygiena.
The transaction is expected to close in the first quarter of 2017, after meeting the customary closing conditions, including regulatory clearances. However, the companies did not disclose the financial terms of the agreement.
The integration of DuPont Diagnostics and Hygiena will create a broad food safety diagnostics company that can cater to the needs of the customer better. For Hygiena, the acquisition will bolster its presence in the U.S and internationally. Consequently, this will allow the company to further increase its research and development efforts, and support to its combined customer base.
On the other hand, with the culmination of this deal, DuPont Nutrition & Health will be able to focus on growth opportunities that are more closely associated with its core portfolio of specialty food ingredients. DuPont stated that the Diagnostics business will be an excellent fit for Hygiena, as with the acquisition it will be enabled to provide better opportunities for growth and investment in innovative solutions for the global pathogen testing industry.
Hygiena is a microbiology and life science company that caters to industrial food processors, healthcare institutions, life science researchers and other industries. In 2016, the company received an investment from Warburg Pincus, a global private equity firm aimed at growth investing.
DuPont has outperformed the Zacks categorized Chemicals industry in the past three months. The company’s shares have gained around 9.6% in this period, compared with a 5.9% gain recorded by the industry.
DuPont is well poised to gain from its aggressive cost-cutting measures and new product launches. The company has a positive record of earnings surprises in recent quarters, aided by its cost management actions. Further, it remains on track to deliver net cost reductions of $730 million in 2016. It has raised its adjusted earnings guidance for 2016, factoring in the benefits of its cost-saving initiatives.
Moreover, DuPont is moving forward with its planned mega-merger with The Dow Chemical Company (DOW - Free Report) , which is anticipated to create significant synergies.
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DuPont: Hygiena to Buy Food Safety Diagnostics Business
DuPont’s (DD - Free Report) Nutrition & Health business announced that its global food safety diagnostics business will be acquired by Hygiena, a Warburg Pincus portfolio company. The buyout will include all of DuPont Diagnostics business assets, including the BAX and RiboPrinter Systems and related test kits, a global and technically trained sales, R&D and manufacturing organization, and in-house production capacity. However, the business will retain its name – Qualicon – after acquisition by Hygiena.
The transaction is expected to close in the first quarter of 2017, after meeting the customary closing conditions, including regulatory clearances. However, the companies did not disclose the financial terms of the agreement.
The integration of DuPont Diagnostics and Hygiena will create a broad food safety diagnostics company that can cater to the needs of the customer better. For Hygiena, the acquisition will bolster its presence in the U.S and internationally. Consequently, this will allow the company to further increase its research and development efforts, and support to its combined customer base.
On the other hand, with the culmination of this deal, DuPont Nutrition & Health will be able to focus on growth opportunities that are more closely associated with its core portfolio of specialty food ingredients. DuPont stated that the Diagnostics business will be an excellent fit for Hygiena, as with the acquisition it will be enabled to provide better opportunities for growth and investment in innovative solutions for the global pathogen testing industry.
Hygiena is a microbiology and life science company that caters to industrial food processors, healthcare institutions, life science researchers and other industries. In 2016, the company received an investment from Warburg Pincus, a global private equity firm aimed at growth investing.
DuPont has outperformed the Zacks categorized Chemicals industry in the past three months. The company’s shares have gained around 9.6% in this period, compared with a 5.9% gain recorded by the industry.
DuPont is well poised to gain from its aggressive cost-cutting measures and new product launches. The company has a positive record of earnings surprises in recent quarters, aided by its cost management actions. Further, it remains on track to deliver net cost reductions of $730 million in 2016. It has raised its adjusted earnings guidance for 2016, factoring in the benefits of its cost-saving initiatives.
Moreover, DuPont is moving forward with its planned mega-merger with The Dow Chemical Company (DOW - Free Report) , which is anticipated to create significant synergies.
DuPont currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the chemical space include The Chemours Company (CC - Free Report) and FMC Corp. (FMC - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected long-term growth of 15.5%.
FMC has an expected long-term growth of 10.88%.
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