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Air Products Wraps Up PMD Unit Sale to Evonik for $3.8B
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Industrial gas giant, Air Products (APD - Free Report) has wrapped up the sale of its Performance Materials Division (“PMD”) to Germany's Evonik Industries AG for $3.8 billion in cash. The deal was initially announced in May 2016.
Per the terms of the deal, operational facilities, supplier contracts, labs, contracts, customers, and employees and specific legal entities related to PMD have been transferred to Evonik.
Air Products, in Oct 2016, also completed the separation of its Electronics Materials Division through the spin-off of Versum Materials, Inc. Versum started trading on the NYSE under the symbol "VSM" on Oct 3.
The spin-off of Versum and the sale of PMD will allow Air Products to direct resources to grow its core and stable industrial gases business. These actions (part of the company’s strategic five-point plan) are expected to enable Air Products to achieve its goal of becoming the safest and most profitable industrial gas company globally and create shareholder value in the longer term.
Air Products has underperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have gained around 5% over this period, compared with roughly 6.8% gain recorded by the industry.
Air Products is gaining from cost-cutting measures, new business deals and strategic investments. However, its industrial gases business in the Europe, Middle East, and Africa (“EMEA”) region is seeing pressure from a weak operating environment. The company is also exposed to currency headwinds and still has a debt-laden balance sheet.
Air Products currently carries a Zacks Rank #3 (Hold).
Chemours has an expected earnings growth of around 60.1% for the current year.
Kronos has an expected earnings growth of around 261.5% for the current year.
Methanex has an expected long-term growth of around 15%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Air Products Wraps Up PMD Unit Sale to Evonik for $3.8B
Industrial gas giant, Air Products (APD - Free Report) has wrapped up the sale of its Performance Materials Division (“PMD”) to Germany's Evonik Industries AG for $3.8 billion in cash. The deal was initially announced in May 2016.
Per the terms of the deal, operational facilities, supplier contracts, labs, contracts, customers, and employees and specific legal entities related to PMD have been transferred to Evonik.
Air Products, in Oct 2016, also completed the separation of its Electronics Materials Division through the spin-off of Versum Materials, Inc. Versum started trading on the NYSE under the symbol "VSM" on Oct 3.
The spin-off of Versum and the sale of PMD will allow Air Products to direct resources to grow its core and stable industrial gases business. These actions (part of the company’s strategic five-point plan) are expected to enable Air Products to achieve its goal of becoming the safest and most profitable industrial gas company globally and create shareholder value in the longer term.
Air Products has underperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have gained around 5% over this period, compared with roughly 6.8% gain recorded by the industry.
Air Products is gaining from cost-cutting measures, new business deals and strategic investments. However, its industrial gases business in the Europe, Middle East, and Africa (“EMEA”) region is seeing pressure from a weak operating environment. The company is also exposed to currency headwinds and still has a debt-laden balance sheet.
Air Products currently carries a Zacks Rank #3 (Hold).
AIR PRODS & CHE Price
AIR PRODS & CHE Price | AIR PRODS & CHE Quote
Stocks to Consider
Better-ranked companies in the chemical space include The Chemours Company (CC - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Methanex Corporation (MEOH - Free Report) all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth of around 60.1% for the current year.
Kronos has an expected earnings growth of around 261.5% for the current year.
Methanex has an expected long-term growth of around 15%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>