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Univar (UNVR) Inks Distribution Deal With Colonial Chemical

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Univar Inc.’s (UNVR - Free Report) fully-owned subsidiary, Univar B.V., and Colonial Chemical's beauty, personal care and household divisions have inked a new distribution deal. The five-year European distribution deal will not only expand Univar’s surfactant portfolio but will also increase its ability to offer products derived from renewable ingredients.

Colonial focuses on the emerging green chemistry market along with traditional methods to offer household, personal care and industrial products. It is a global supplier of surfactants to more than 25 countries.  

According to Univar, surfactants have always been an important part of its portfolio. The latest move will enable the company to provide a tailored offering of surfactants derived from all-natural and renewable ingredients. It will also help to address the growing demand for natural products in home care and personal care markets.

Notably, Univar’s focused industries line of business provides dedicated expertise to three core industries — Personal Care, Food Ingredients and Coatings & Adhesives. Moreover, its simplified supply chain helps to reduce supplier costs and extends the reach of technical expertise into local markets.

Univar’s shares have lost 3.5% over the past six months, modestly underperforming the industry’s 2.8% dip.

Univar, during first-quarter earnings call, said that it expects strong core business performance in the second quarter of 2018 and projects a high single digit growth in adjusted EBITDA.

Moreover, Univar sees adjusted EBITDA growth of low-double digits for full-year 2018. Moreover, the company, last month, raised its adjusted earnings expectations to the range of $1.65-$1.85 per share from the previous guidance of $1.60-$1.80.

Univar Inc. Price and Consensus

Univar Inc. Price and Consensus | Univar Inc. Quote

Zacks Rank & Other Stocks to Consider

Univar currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks worth considering in the basic materials space are FMC Corporation (FMC - Free Report) , Westlake Chemical Corporation (WLK - Free Report) and Celanese Corporation (CE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FMC Corp has an expected long-term earnings growth rate of 14.3%. Its shares have moved up 19.2% in a year.

Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 87.3% in a year.

Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have gained 33.7% in a year.

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