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American Vanguard Closes Crop Protection Assets Buy
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American Vanguard’s (AVD - Free Report) fully-owned unit, AMVAC Chemical Corporation has wrapped up the earlier announced purchase of three crop protection product lines – abamectin, chlorothalonil and paraquat – from Adama Agricultural Solutions Ltd., part of China National Chemical Corporation (ChemChina) group. Financial terms of the deal were not divulged.
The assets acquired by AMVAC include trademarks, product registrations, registration data, and commercial information that relate to the marketing and sale of these three products in the crop protection market within the U.S.
These product lines were divested by ChemChina pursuant to the terms of a consent decree from the Federal Trade Commission (“FTC”) as a condition for the agency’s approval of the merger between ChemChina and Syngenta AG.
American Vanguard noted that the addition of these product lines diversifies its crop and geographical units and also adds sales opportunities for its channel partners. Moreover, the buyout provides the company with technologies, leveraging which it can build additional premix value-added products. The company expects the acquired products to increase full-year 2017 domestic sales by 10%-15%.
American Vanguard’s shares rallied around 18% over a year, outperforming the Zacks categorized Chemical-Specialty industry’s 5.6% gain.
American Vanguard’s earnings for first-quarter 2017 were in line with estimates, while revenues missed expectations. The company expects strong sales performance for the rest of 2017 based on domestic and international market trends. It sees consistent growth of cotton and peanut products, and stable performance of soil fumigants.
American Vanguard also expects a strong post-emergent herbicide market due to delayed planting on many corn acres which would benefit sales of Impact corn herbicide during the second quarter. Moreover, the company envisions multiple acquisition opportunities in 2017.
American Vanguard is a Zacks Rank #3 (Hold) stock.
Huntsman has an expected long-term earnings growth of 7%.
BASF has an expected long-term earnings growth of 8.9%.
Chemours has an expected long-term earnings growth of 15.5%.
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American Vanguard Closes Crop Protection Assets Buy
American Vanguard’s (AVD - Free Report) fully-owned unit, AMVAC Chemical Corporation has wrapped up the earlier announced purchase of three crop protection product lines – abamectin, chlorothalonil and paraquat – from Adama Agricultural Solutions Ltd., part of China National Chemical Corporation (ChemChina) group. Financial terms of the deal were not divulged.
The assets acquired by AMVAC include trademarks, product registrations, registration data, and commercial information that relate to the marketing and sale of these three products in the crop protection market within the U.S.
These product lines were divested by ChemChina pursuant to the terms of a consent decree from the Federal Trade Commission (“FTC”) as a condition for the agency’s approval of the merger between ChemChina and Syngenta AG.
American Vanguard noted that the addition of these product lines diversifies its crop and geographical units and also adds sales opportunities for its channel partners. Moreover, the buyout provides the company with technologies, leveraging which it can build additional premix value-added products. The company expects the acquired products to increase full-year 2017 domestic sales by 10%-15%.
American Vanguard’s shares rallied around 18% over a year, outperforming the Zacks categorized Chemical-Specialty industry’s 5.6% gain.
American Vanguard’s earnings for first-quarter 2017 were in line with estimates, while revenues missed expectations. The company expects strong sales performance for the rest of 2017 based on domestic and international market trends. It sees consistent growth of cotton and peanut products, and stable performance of soil fumigants.
American Vanguard also expects a strong post-emergent herbicide market due to delayed planting on many corn acres which would benefit sales of Impact corn herbicide during the second quarter. Moreover, the company envisions multiple acquisition opportunities in 2017.
American Vanguard is a Zacks Rank #3 (Hold) stock.
American Vanguard Corporation Price and Consensus
American Vanguard Corporation Price and Consensus | American Vanguard Corporation Quote
Stocks to Consider
Better-ranked stocks in the chemical space include Huntsman Corporation (HUN - Free Report) , BASF SE (BASFY - Free Report) and The Chemours Company (CC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman has an expected long-term earnings growth of 7%.
BASF has an expected long-term earnings growth of 8.9%.
Chemours has an expected long-term earnings growth of 15.5%.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>