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DowDuPont's Unit to Sell Alginates Business to JRS Group
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DowDuPont Inc.’s business unit, DuPont Nutrition & Health (N&H) has secured the green signal from the European Commission (EC) to divest its heritage DuPont N&H Alginates business to JRS Group that makes functional additives from plant-based raw materials.
The transaction, which is expected to close in third-quarter 2018, includes the heritage DuPont N&H Alginates business, comprising pure and buffered alginates, a specific portfolio of pectin-alginate blends, the associated Landerneau production site and customer relationships.
The divestment was a requirement set out by the EC upon its conditional clearance of DuPont’s buyout of FMC Corp’s Health & Nutrition business last year.
DowDuPont has underperformed the industry it belongs to over a year. The company’s shares have gained around 3.2% over this period, compared with roughly 12% growth recorded by the industry.
The company, during its first-quarter 2018 call, noted that it has realized cost-synergy savings of more than $300 million in the first quarter and is on track to deliver a 75% run rate against its $3.3 billion cost synergy target by the end of third-quarter 2018. It also returned around $2 billion to shareholders in the first quarter through dividends and share repurchases.
DowDuPont expects net sales in the second quarter to increase more than 10% and operating EBITDA to rise more than 20% on a year-over-year basis.
DowDuPont remains committed to achieve the cost-synergy target, execute its growth projects and deliver new products from its innovation pipeline. The company also expects the Materials Science business spin-off to complete by the end of first-quarter 2019, followed by the separation of Agriculture and Specialty Products businesses by Jun 1, 2019.
FMC Corp has an expected long-term earnings growth rate of 16.4%. Its shares have gained around 19.6% over a year.
Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have moved up around 31.8% over a year.
Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained around 20.3% over a year.
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DowDuPont's Unit to Sell Alginates Business to JRS Group
DowDuPont Inc.’s business unit, DuPont Nutrition & Health (N&H) has secured the green signal from the European Commission (EC) to divest its heritage DuPont N&H Alginates business to JRS Group that makes functional additives from plant-based raw materials.
The transaction, which is expected to close in third-quarter 2018, includes the heritage DuPont N&H Alginates business, comprising pure and buffered alginates, a specific portfolio of pectin-alginate blends, the associated Landerneau production site and customer relationships.
The divestment was a requirement set out by the EC upon its conditional clearance of DuPont’s buyout of FMC Corp’s Health & Nutrition business last year.
DowDuPont has underperformed the industry it belongs to over a year. The company’s shares have gained around 3.2% over this period, compared with roughly 12% growth recorded by the industry.
The company, during its first-quarter 2018 call, noted that it has realized cost-synergy savings of more than $300 million in the first quarter and is on track to deliver a 75% run rate against its $3.3 billion cost synergy target by the end of third-quarter 2018. It also returned around $2 billion to shareholders in the first quarter through dividends and share repurchases.
DowDuPont expects net sales in the second quarter to increase more than 10% and operating EBITDA to rise more than 20% on a year-over-year basis.
DowDuPont remains committed to achieve the cost-synergy target, execute its growth projects and deliver new products from its innovation pipeline. The company also expects the Materials Science business spin-off to complete by the end of first-quarter 2019, followed by the separation of Agriculture and Specialty Products businesses by Jun 1, 2019.
Zacks Rank & Stocks to Consider
DowDuPont is a Zacks Rank #3 (Hold) stock
Some better-ranked companies in the basic materials space are FMC Corp. (FMC - Free Report) , Celanese Corp. (CE - Free Report) and The Chemours Company (CC - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC Corp has an expected long-term earnings growth rate of 16.4%. Its shares have gained around 19.6% over a year.
Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have moved up around 31.8% over a year.
Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained around 20.3% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>