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NGVT Sells Ozark Materials to PPG to Streamline Core Operations
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Key Takeaways
Ingevity divests Ozark Materials road markings unit to PPG for about $65M in cash.
NGVT aims to streamline portfolio and focus on higher-margin core segments.
Proceeds will support strategic initiatives of NGVT and improve capital allocation efficiency.
Ingevity Corporation (NGVT - Free Report) has announced the sale of its Ozark Materials road markings business to PPG Industries, Inc. (PPG - Free Report) for approximately $65 million in cash (subject to adjustments). This marks a strategic step for NGVT to streamline its portfolio and sharpen its focus on core operations.
The divestiture is limited solely to Ingevity’s Ozark Materials road markings business. It reflects Ingevity’s ongoing efforts to prioritize higher-margin and growth-oriented businesses. Ozark Materials, which manufactures pavement marking materials used in road safety applications, will now become part of PPG’s traffic solutions portfolio.
It will strengthen PPG’s position in the pavement marking solutions. The transaction is expected to improve NGVT’s overall business mix and capital allocation efficiency, while also reducing exposure to more cyclical and lower-margin activities.
The company indicated that the proceeds from the sale will be reinvested in initiatives aligned with its long-term growth priorities. This move underscores Ingevity’s disciplined portfolio management and its commitment to enhancing shareholder value through focused execution.
Shares of NGVT have skyrocketed 135% over the past year compared with the industry’s 10.6% growth.
The Zacks Consensus Estimate for ESI’s current-year earnings stands at $1.76 per share, implying a 18.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.4%.
The Zacks Consensus Estimate for HWKN’s current-year earnings is pegged at $3.95 per share, indicating a 2% year-over-year decrease. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, with the average negative surprise being 1.5%.
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NGVT Sells Ozark Materials to PPG to Streamline Core Operations
Key Takeaways
Ingevity Corporation (NGVT - Free Report) has announced the sale of its Ozark Materials road markings business to PPG Industries, Inc. (PPG - Free Report) for approximately $65 million in cash (subject to adjustments). This marks a strategic step for NGVT to streamline its portfolio and sharpen its focus on core operations.
The divestiture is limited solely to Ingevity’s Ozark Materials road markings business. It reflects Ingevity’s ongoing efforts to prioritize higher-margin and growth-oriented businesses. Ozark Materials, which manufactures pavement marking materials used in road safety applications, will now become part of PPG’s traffic solutions portfolio.
It will strengthen PPG’s position in the pavement marking solutions. The transaction is expected to improve NGVT’s overall business mix and capital allocation efficiency, while also reducing exposure to more cyclical and lower-margin activities.
The company indicated that the proceeds from the sale will be reinvested in initiatives aligned with its long-term growth priorities. This move underscores Ingevity’s disciplined portfolio management and its commitment to enhancing shareholder value through focused execution.
Shares of NGVT have skyrocketed 135% over the past year compared with the industry’s 10.6% growth.
NGVT’s Zacks Rank & Key Picks
NGVT currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Element Solutions Inc. (ESI - Free Report) and Hawkins, Inc. (HWKN - Free Report) . ESI and HWKN carry a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for ESI’s current-year earnings stands at $1.76 per share, implying a 18.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.4%.
The Zacks Consensus Estimate for HWKN’s current-year earnings is pegged at $3.95 per share, indicating a 2% year-over-year decrease. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, with the average negative surprise being 1.5%.