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Univar (UNVR) to Distribute CEAMSA Texturizers in Europe

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Univar Inc.’s subsidiary — Univar B.V. — was recently selected by CEAMSA to distribute the latter’s texturizing products in several regions of Europe. Texturizing products are employed in various applications within the food industry including dairy-free beverages, chocolate milk and confectionery.

CEAMSA is a leading producer and supplier of carrageenan globally. It is consistently investing in pectin and citrus fiber production to strengthen market positions in important segments. Through this deal, Univar will bring formulation expertise in sports nutrition, ready meals and bakery to CEAMSA's customers.

Per Univar, CEAMSA's portfolio enables it to boost solutions-based offering by providing customers with texture across multiple manufacturing sectors. Notably, the vegan dining and sugar reduction consumer trends are growing. With this deal, Univar has a wide range of offerings for CEAMSA to solve these customer challenges.

Univar's shares have lost 24.6% in the past year compared with the industry’s 14.8% decline.



Earlier this month, the company provided update for 2019 outlook that reflects the recently-completed acquisition of Nexeo Solutions, Inc, which was closed on Mar 1, 2019.

For 2019, Univar expects adjusted EBITDA between $740 million and $760 million on a combined basis. The projected figure reflects 10-months earnings from the Nexeo Chemicals business and realized synergies worth roughly $10 million. The company expects to generate $300-$350 million in free cash flow, before one-time integration costs of around $70 million.

Zacks Rank & Key Picks

Univar currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd. , Ingevity Corporation (NGVT - Free Report) and Materion Corporation (MTRN - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 110% in the past year.

Ingevity has an expected earnings growth rate of 17.9% for the current year. The company’s shares have rallied 41% in a year’s time.

Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 5.8% in a year’s time.

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