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Univar (UNVR) to be Acquired by Apollo Funds for $8.1B
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Univar Solutions Inc. is set to be acquired by Apollo Funds in an all-cash transaction valued at around $8.1 billion.
According to the agreement, shareholders of Univar would get $36.15 per share in cash, representing a 20.6% premium to the company's undistributed closing stock price as of Nov 22, 2022. In addition, the transaction consideration reflects a premium of 33.6% over Univar's volume-weighted average price for the 30 trading days ending on Nov 22, 2022.
Univar has positioned itself as a top supplier of value-added services and solutions over the past three years. It noted that the transaction is a result of a comprehensive review of value creation opportunities and will enable it to achieve its goal of maximizing value for its shareholders.
The transaction is expected to be funded with equity provided by the Apollo Funds, a minority equity investment from a fully-owned subsidiary of Abu Dhabi Investment Authority and a committed debt financing package. The transaction is expected to close in the second half of 2023, subject to approval by UNVR’s shareholders and regulatory clearances. Univar will become a privately held company post the completion of the deal.
Univar’s shares are up 6.9% over the past year compared with 0.7% rise of its industry.
Image Source: Zacks Investment Research
The company missed earnings and revenue estimates in the fourth quarter of 2022. Its adjusted earnings for the quarter fell to 47 cents per share from 60 cents in the year-ago quarter, and missed the Zacks Consensus Estimate of 56 cents.
The company’s revenues rose around 4% year over year to $2,592.6 million in the quarter but lagged the Zacks Consensus Estimate of $2,798.1 million. UNVR’s pricing discipline was partly offset by lower demand from consumer destocking.
The company, on its fourth-quarter call, said that it expects adjusted EBITDA of $200–$220 million for the first quarter of 2023. Adjusted EBITDA is anticipated to be in the range of $900 to $930 million for 2023. The forecast takes into account efficient operational performance, market share expansion, cost control and savings seeding from its Value Capture Program. The company estimates its net free cash flow will be between $425 million and $445 million in 2023.
Better-ranked stocks to consider in the basic materials space include Steel Dynamics Inc. (STLD - Free Report) , Olympic Steel Inc. (ZEUS - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). STLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3% on average. STLD has rallied around 55% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel currently sports a Zacks Rank #1. ZEUS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 26.2% on average. ZEUS has rallied around 54.5% in a year.
Nucor currently has a Zacks Rank #2 (Buy). The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.7% on average. NUE has gained around 15.6% in a year.
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Univar (UNVR) to be Acquired by Apollo Funds for $8.1B
Univar Solutions Inc. is set to be acquired by Apollo Funds in an all-cash transaction valued at around $8.1 billion.
According to the agreement, shareholders of Univar would get $36.15 per share in cash, representing a 20.6% premium to the company's undistributed closing stock price as of Nov 22, 2022. In addition, the transaction consideration reflects a premium of 33.6% over Univar's volume-weighted average price for the 30 trading days ending on Nov 22, 2022.
Univar has positioned itself as a top supplier of value-added services and solutions over the past three years. It noted that the transaction is a result of a comprehensive review of value creation opportunities and will enable it to achieve its goal of maximizing value for its shareholders.
The transaction is expected to be funded with equity provided by the Apollo Funds, a minority equity investment from a fully-owned subsidiary of Abu Dhabi Investment Authority and a committed debt financing package. The transaction is expected to close in the second half of 2023, subject to approval by UNVR’s shareholders and regulatory clearances. Univar will become a privately held company post the completion of the deal.
Univar’s shares are up 6.9% over the past year compared with 0.7% rise of its industry.
Image Source: Zacks Investment Research
The company missed earnings and revenue estimates in the fourth quarter of 2022. Its adjusted earnings for the quarter fell to 47 cents per share from 60 cents in the year-ago quarter, and missed the Zacks Consensus Estimate of 56 cents.
The company’s revenues rose around 4% year over year to $2,592.6 million in the quarter but lagged the Zacks Consensus Estimate of $2,798.1 million. UNVR’s pricing discipline was partly offset by lower demand from consumer destocking.
The company, on its fourth-quarter call, said that it expects adjusted EBITDA of $200–$220 million for the first quarter of 2023. Adjusted EBITDA is anticipated to be in the range of $900 to $930 million for 2023. The forecast takes into account efficient operational performance, market share expansion, cost control and savings seeding from its Value Capture Program. The company estimates its net free cash flow will be between $425 million and $445 million in 2023.
Univar Solutions Inc. Price and Consensus
Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. Quote
Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Steel Dynamics Inc. (STLD - Free Report) , Olympic Steel Inc. (ZEUS - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). STLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3% on average. STLD has rallied around 55% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel currently sports a Zacks Rank #1. ZEUS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 26.2% on average. ZEUS has rallied around 54.5% in a year.
Nucor currently has a Zacks Rank #2 (Buy). The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.7% on average. NUE has gained around 15.6% in a year.