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Univar (UNVR) to Distribute Evergrain's Plant-Based Portfolio

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Univar Solutions Inc. has been selected by Evergrain Ingredients LLC to distribute its portfolio of plant-based ingredients for beverages, food and nutraceutical products in the United States and Canada along with various countries in Europe, Middle East, and Africa (EMEA). The Evergrain product range will expand Univar's comprehensive offering of nutraceutical and plant-based food products across these regions.

Further, the deal includes a wide range of products including, EverVita Pro, EverPro, and EverVita Fibra. EverPro is used in various applications like ready-to-mix beverages and plant-based milks. EverVita Fibra and EverVita Pro are used across baked goods such as cakes, bread, pasta and pizza crusts.

Per Univar, these ingredients will resonate with the needs of its food and beverage customers in the United States, Canada and EMEA. The company is looking forward to assist Evergrain expand the reach of its innovative, plant-based solutions and also create additional value to customers across greater geographies. Notably, Evergrain produces nutritious, sustainable and functional ingredients for food products, beverages and food supplements.

Univar’s shares have lost 21.6% in a year against 6.4% rise recorded by the industry.

In third-quarter 2020 earnings, Univar stated that it expects adjusted EBITDA to be around $140-$145 million for the fourth quarter. It also expects adjusted EBITDA in the band of $629-$634 million for 2020.

The company is actively managing its expenses and looking to reduce costs to maintain its financial strength. Also, it expects these savings to generate more than $40 million in cost reductions for 2020, which are incremental to the net synergies expected from the Nexeo acquisition of $45 million.  

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and New Gold Inc. (NGD - Free Report) . While Agnico Eagle and Barrick sport a Zacks Rank #1 (Strong Buy), New Gold carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has an expected earnings growth rate of 103.1% for 2020. Its shares have returned 13.3% in the past year.

Barrick has an expected earnings growth rate of 115.7% for 2020. The company’s shares have gained 44.4% in the past year.

New Gold has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 115.5% in the past year.

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