Back to top

Image: Bigstock

Macquarie (MIC) Divests IMTT Unit, Declares Special Dividend

Read MoreHide Full Article

Macquarie Infrastructure Corporation announced on Dec 23 that it has divested its liquid storage and handling business, International-Matex Tank Terminals (“IMTT”), for a total consideration of $2.67 billion (including IMTT’s approximately $1.1 billion of debt outstanding). Notably, the other party to the transaction was an affiliate of Riverstone Holdings, Inc. It is worth mentioning here that Macquarie entered into a deal to sell the IMTT business on Nov 8.

Following the news, the company’s shares gained 4.2% to eventually close at $37.74 on Dec 24.

Inside the Headlines

Macquarie believes that the divestment will allow it to focus more on its core businesses. Also, the deal will improve the company’s financial flexibility, strengthen balance sheet and enable it to enhance shareholders’ wealth. The company will utilize all net proceeds from the sale for payment of a one-time dividend and lowering its debt level.

Notably, the company’s board of directors approved the payment of a special dividend of $11 per share to shareholders of record as of Jan 5, 2021. The disbursement will be made on Jan 8, 2021.

Zacks Rank, Estimates and Price Performance

Macquarie, which has a $3.3 -billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company has been witnessing a lackluster performance across its Atlantic Aviation and MIC Hawaii segments, due to weak end-market conditions. Despite partial recovery, low general aviation flight activity will likely continue to affect demand for products and services provided by the company’s Atlantic Aviation and MIC Hawaii segments in the quarters ahead.

The Zacks Consensus Estimate for the company’s 2021 earnings is pegged at $1.67, suggesting a decline of 56.8% from the 60-day-ago figure.

The company’s shares have gained 43.3% in the past three months compared the industry’s rally of 21.8%.

Stocks to Consider

Some better-ranked stocks from the same space are Crane Company (CR - Free Report) , Raven Industries, Inc. and Danaher Corporation (DHR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Crane has a trailing-four quarter earnings surprise of 14.59%, on average.

Raven has a trailing four-quarter earnings surprise of 126.84%, on average.

Danaher has a trailing four-quarter earnings surprise of 17.00%, on average.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Danaher Corporation (DHR) - free report >>

Crane Company (CR) - free report >>

Published in