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Univar (UNVR) Buys ChemSol, Grows Central American Presence

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Univar Solutions Inc. has acquired ChemSol Group (“ChemSol”), a leading ingredients and specialty chemicals distributor, to expand its footprint in Central America as well as enhance its Ingredients and Specialties product offering. The terms of the deal have been kept under wraps.

The company anticipates that through this strategic acquisition, it will be able to boost formulation and commercial offerings across key growth markets like beauty and personal care, pharmaceutical excipients, food, coatings, adhesives, sealants, and elastomers, lubricants and metalworking fluids.

Univar stated that this acquisition strengthened its Ingredients and Specialty product portfolios and enhanced its position as a strategic partner to its suppliers and customers. The company also stated that it remains focused on finding solutions to some toughest challenges and remains ahead of industry-specific trends as well as regulatory changes through sustainable solutions, continuous innovation, a global network of technical expertise and customer support.

Both Univar and ChemSol share a focus on value-added services, continuous improvement and environmental responsibility through which the two companies anticipate meeting the evolving needs of customers in Central America.

UNVR’s shares have gained 22.9% in the past year, outperforming industry’s growth of 6.5%.
 

Zacks Investment Research
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Univar, in its fourth-quarter call, said that it expects strong operational execution, market share gains and savings from cost management. The company expects its adjusted EBITDA for the fourth quarter of 2022 to be between $180 million and $200 million. For full-year 2022, UNVR expects its adjusted EBITDA to be in the range of $1,050 million to $1,080 million compared with $1,040-$1,080 million expected earlier.

 

Univar Solutions Inc. Price and Consensus

Univar Solutions Inc. Price and Consensus

Zacks Rank & Key Picks

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

Better-ranked stocks to consider in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Cal-Maine Foods, Inc. (CALM - Free Report) and Clearwater Paper Corporation (CLW - Free Report) . CALM and CLW both sport a Zacks Rank #1 (Strong Buy), while CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

CRS’ shares have gained 68.6% in the past year. The company has an earnings growth rate of 203.8% for the current year. The firm outpaced Zacks Consensus Estimate in all of the last four quarters. It delivered a trailing four-quarter earnings surprise of 33.6% on average.

Cal-Maine’s shares have gained 27.7% in the past year. The company has an earnings growth rate of 417.7% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 73.8% upward in the past 60 days.

The company topped Zacks Consensus Estimate in three of the last fourth quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.

CLW’s shares have gained 23.2% in the past year. The company has an earnings growth rate of 278.6% for the current year.

Clearwater Paper beat Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 13% on average.












 


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