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Univar (UNVR) Expands Deal With Sensient, Boosts Portfolio

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Univar Solutions Inc. announced an expansion in its agreement with Sensient Technologies for the distribution of synthetic coloring products in Mexico for the food, beverage, nutraceutical and pharmaceutical markets. There is already an existing distribution agreement with Sensient in Canada and Europe.

The deal reinforces Univar’s product portfolio for food, beverage, nutraceutical and pharmaceutical markets. Univar is well-placed to provide differential value to customers throughout the above-mentioned markets through a consistent global approach across the key industries and a global footprint of technical solution centers and a wide product portfolio.

This also complements Sensient’s products as a global producer of customized color solutions with color technology innovation, which helps manufacturers and brands differentiate their products and achieve a competitive advantage.

Univar’s technical team has the expertise to efficiently and effectively support customers' complex color formulation demand through a fully equipped solution center in Mexico City, with both formulation and testing capabilities.

Shares of Univar have surged 198.3% in the past year compared with a 102.1% rise of the industry.

 

 

The company, on its last reported quarter’s earnings call, stated that it expects adjusted EBITDA of $630-$650 million for 2021. It also anticipates adjusted EBITDA of $150-$160 million for first-quarter 2021.

Univar is also actively managing its expenses and reducing costs to maintain its financial strength. These savings represented more than $20 million in cost reductions for 2020, which are incremental to the net synergies achieved from the Nexeo acquisition of $46 million. It expects to achieve $120 million in annual Nexeo net synergies by early 2022.

Zacks Rank & Key Picks

Univar currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 107.8% for the current fiscal year. The company’s shares have surged 182.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank  stocks here.

Ashland has an expected earnings growth rate of 83.9% for the current fiscal year. The company’s shares have gained 106.9% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal year. The company’s shares have rallied 483.3% in the past year. It currently flaunts a Zacks Rank #1.

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