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Huntsman (HUN) Set to Acquire Gabriel Performance Products
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Huntsman Corporation (HUN - Free Report) announced that it has agreed to acquire Gabriel Performance Products, a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from funds owned by Audax Private Equity.
Per the terms of the agreement, Huntsman will pay $250 million in an all cash transaction funded from available liquidity, subject to customary closing adjustments.
Gabriel’s revenues of 2019 were roughly $106 million with three manufacturing facilities located in Ashtabula, OH, Harrison City, PA and Rock Hill, SC. The purchase price represents an adjusted EBITDA multiple of around 11 times, or roughly eight times pro forma for synergies, based on 2019.
Acquisition of Gabriel will complement Huntsman’s recent acquisition of CVC Thermoset Specialties. It is also expected to provide significant commercial synergies as the company expands and globalizes its specialty products portfolio.
The transaction is expected to be completed in first-quarter 2021 post regulatory approvals.
Shares of Huntsman have increased 8.2% over a year compared with 11% rise of its industry.
Huntsman is witnessing positive momentum entering the fourth quarter. It is on track to integrate two downstream acquisitions completed earlier this year and delivering more than $100 million of targeted annualized savings from its cost optimization initiative by the end of next year. The company is also focused on growth of its differentiated businesses and enhancing shareholders’ value.
Huntsman currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space are Bunge Limited (BG - Free Report) , Silvercorp Metals Inc. (SVM - Free Report) , and First Majestic Silver Corp. (AG - Free Report) .
Bunge has a projected earnings growth rate of 43% for the current year. The company’s shares have gained around 14% 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 are up around 16.6% in the past year. It currently carries a Zacks Rank #2 (Buy).
First Majestic has an expected earnings growth rate of 75% for the current year. The company’s shares have gained around 9.4% in the past year. It currently carries a Zacks Rank #2.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Huntsman (HUN) Set to Acquire Gabriel Performance Products
Huntsman Corporation (HUN - Free Report) announced that it has agreed to acquire Gabriel Performance Products, a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from funds owned by Audax Private Equity.
Per the terms of the agreement, Huntsman will pay $250 million in an all cash transaction funded from available liquidity, subject to customary closing adjustments.
Gabriel’s revenues of 2019 were roughly $106 million with three manufacturing facilities located in Ashtabula, OH, Harrison City, PA and Rock Hill, SC. The purchase price represents an adjusted EBITDA multiple of around 11 times, or roughly eight times pro forma for synergies, based on 2019.
Acquisition of Gabriel will complement Huntsman’s recent acquisition of CVC Thermoset Specialties. It is also expected to provide significant commercial synergies as the company expands and globalizes its specialty products portfolio.
The transaction is expected to be completed in first-quarter 2021 post regulatory approvals.
Shares of Huntsman have increased 8.2% over a year compared with 11% rise of its industry.
Huntsman is witnessing positive momentum entering the fourth quarter. It is on track to integrate two downstream acquisitions completed earlier this year and delivering more than $100 million of targeted annualized savings from its cost optimization initiative by the end of next year. The company is also focused on growth of its differentiated businesses and enhancing shareholders’ value.
Huntsman Corporation Price and Consensus
Huntsman Corporation price-consensus-chart | Huntsman Corporation Quote
Zacks Rank & Stocks to Consider
Huntsman currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space are Bunge Limited (BG - Free Report) , Silvercorp Metals Inc. (SVM - Free Report) , and First Majestic Silver Corp. (AG - Free Report) .
Bunge has a projected earnings growth rate of 43% for the current year. The company’s shares have gained around 14% 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 are up around 16.6% in the past year. It currently carries a Zacks Rank #2 (Buy).
First Majestic has an expected earnings growth rate of 75% for the current year. The company’s shares have gained around 9.4% in the past year. It currently carries a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>