Univar Solutions Inc. announced a definitive deal under which its Environmental Sciences business will be acquired by affiliates of AEA Investors LP for $195 million.
Univar plans to use net proceeds from the sale to further pay down debt.
Per management, the transaction is expected to be a 'win-win' for Environmental Sciences’ dedicated employees, supplier partners and loyal customers. The transaction’s total economic benefit is expected to be enhanced by cost avoidance opportunities.
The transaction is slated to be closed by the end of 2019 or early 2020, subject to the receipt of regulatory clearances, and satisfaction of other customary closing terms and conditions. On completion of the transaction, the independent Environmental Sciences business will announce new name and brand identity.
Vice president of Environmental Sciences, Trace McEuen, will continue to lead the business under AEA's ownership.
Piper Jaffray & Co. and Stinson LLP are acting as the financial advisor and legal counselor, respectively, for Univar, in connection with the deal.
Univar intends to continue focusing extensively on increasing the value of its core chemical distribution and ingredient business as well as realizing the maximum value from its integration with Nexeo Solutions.
Univar’s shares have gained 28.5% over a year against a 19.3% decline recorded by its industry.
In the last month, the company revised the adjusted EBITDA forecast for 2019, factoring in the lower-than-expected demand for chemicals and ingredients. Further, Univar expects adjusted EBITDA of $700-$725 million for the year compared with $725-$740 million mentioned earlier.
Moreover, the company expects adjusted EBITDA of $155-$180 million for the fourth quarter of 2019, suggesting rise from $144 million reported a year ago.
Univar Inc. Price and Consensus
Zacks Rank & Stocks to Consider
Univar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are General Moly, Inc , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Moly has an expected earnings growth rate of 12.5% for the current fiscal year. The company’s shares have gained 34% in the past year.
Franco-Nevada has a projected earnings growth rate of 45.3% for 2019. The company’s shares have rallied 36.3% in a year.
Agnico Eagle has an estimated earnings growth rate of 167.9% for the current year. Its shares have moved up 53.8% in the past year.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Univar Solutions Inc. announced a definitive deal under which its Environmental Sciences business will be acquired by affiliates of AEA Investors LP for $195 million.
Univar plans to use net proceeds from the sale to further pay down debt.
Per management, the transaction is expected to be a 'win-win' for Environmental Sciences’ dedicated employees, supplier partners and loyal customers. The transaction’s total economic benefit is expected to be enhanced by cost avoidance opportunities.
The transaction is slated to be closed by the end of 2019 or early 2020, subject to the receipt of regulatory clearances, and satisfaction of other customary closing terms and conditions. On completion of the transaction, the independent Environmental Sciences business will announce new name and brand identity.
Vice president of Environmental Sciences, Trace McEuen, will continue to lead the business under AEA's ownership.
Piper Jaffray & Co. and Stinson LLP are acting as the financial advisor and legal counselor, respectively, for Univar, in connection with the deal.
Univar intends to continue focusing extensively on increasing the value of its core chemical distribution and ingredient business as well as realizing the maximum value from its integration with Nexeo Solutions.
Univar’s shares have gained 28.5% over a year against a 19.3% decline recorded by its industry.
In the last month, the company revised the adjusted EBITDA forecast for 2019, factoring in the lower-than-expected demand for chemicals and ingredients. Further, Univar expects adjusted EBITDA of $700-$725 million for the year compared with $725-$740 million mentioned earlier.
Moreover, the company expects adjusted EBITDA of $155-$180 million for the fourth quarter of 2019, suggesting rise from $144 million reported a year ago.
Univar Inc. Price and Consensus
Zacks Rank & Stocks to Consider
Univar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are General Moly, Inc , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Moly has an expected earnings growth rate of 12.5% for the current fiscal year. The company’s shares have gained 34% in the past year.
Franco-Nevada has a projected earnings growth rate of 45.3% for 2019. The company’s shares have rallied 36.3% in a year.
Agnico Eagle has an estimated earnings growth rate of 167.9% for the current year. Its shares have moved up 53.8% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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