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Univar Solutions' (UNVR) Subsidiary Buys Techi Chem's Business

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Univar Solutions Inc. (UNVR - Free Report) announced that its wholly-owned subsidiary, Univar Solutions China Co. Ltd., landed a deal with Zhuhai Techi Chem Silicone Industry Corporation. Univar Solutions China has agreed to purchase a business of Techi Chem for the distribution of innovative specialty silicone solutions used mainly in coatings, adhesives, sealants and elastometers (“CASE”) market. The transaction is expected to be completed in mid-December.

This agreement is in line with the company’s global approach to its dedicated end market verticals. It provides more avenues for growth by enabling Univar to bring differential value to consumers and suppliers within the CASE market.

Through a worldwide footprint of industry-leading capabilities, technical Solution Centers, market knowledge, as well as range of products and solutions, Univar intends to deliver a consistent global approach across key industries.

Univar is focused on delivering innovative solutions to meet market needs and trends. It  looks forward to leverage Techi Chem’s leading specialty silicone solutions.Techi Chem is popular for its value-add solutions and logistics footprint that is well suited for the China Market. It is expected that Univar’s customers from China will benefit from Techi Chem’s strong relationship with the global silicone supplier.

Univar’s shares have declined 22.3% over a year compared with 8.7% rise of its industry.

Univar’s third-quarter adjusted earnings topped the Zacks Consensus Estimate, while sales missed the same. The company is expected to benefit from market expansion and strategic acquisitions. The company is also focused on expense management and productivity actions. It also has a strong liquidity position. The company expects adjusted EBITDA in the range of $140-$145 million for the fourth quarter of 2020.

Univar Inc. Price and Consensus

 

Univar Inc. Price and Consensus

Univar Inc. price-consensus-chart | Univar Inc. Quote

 

Zacks Rank and Key Picks

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

Some better ranked stocks worth considering in the basic materials space are Bunge Limited (BG - Free Report) , Silvercorp Metals Inc. (SVM - Free Report) , and Pretium Resources Inc. (PVG - Free Report) .

Bunge has a projected earnings growth rate of 43% for the current year. The company’s shares have gained around 11% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Silvercorp has an expected earnings growth rate of 40% for the current year. The company’s shares have rallied around 24% in the past year. It currently carries a Zacks Rank #2 (Buy).

Pretium Resources has an expected earnings growth rate of 25.5% for the current year. The company’s shares have gained around 13% in the past year. It currently carries a Zacks Rank #2.

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