Univar Inc. (UNVR - Free Report) recently announced that its NexusAg has been selected by Novozymes as the sole distributor for the latter’s downstream BioYield enhancers in Canada. Notably, BioYield enhancers represent a substantial portion of the company’s biological products portfolio. The deal is effective as of the end of June 2019 and excludes BioRise and JumpStart XL offerings.
Novozymes, a leader in bioinnovation, offers unique dedication to enzymes along with microbes. Its product line of BioYield enhancers are derived from naturally occurring microbes. These act as microbial inoculants that complement conventional fertilizers and boost crop yields for the agricultural industry.
NexusAg will provide dedicated sales presence, which will provide superior market intelligence data along with analytics to forecast trends as well as boost growth.
Univar's shares have lost 17.8% in the past year compared with the industry’s 20.7% decline.
In March 2019, Univar provided updates on 2019 view, considering the recently completed buyout of Nexeo Solutions closed on Mar 1, 2019.
For 2019, it expects adjusted EBITDA between $740 million and $760 million on a combined basis. The projected 10-month earnings from the Nexeo Chemicals business and realized synergies are worth roughly $10 million. The company expects to generate $300-$350 million in free cash flow, before one-time integration cost of around $70 million.
Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd. (KL - Free Report) , Ingevity Corporation (NGVT - Free Report) and Materion Corporation (MTRN - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 105.3% in the past year.
Ingevity has an expected earnings growth rate of 17.9% for the current year. The company’s shares have rallied 56.6% in a year’s time.
Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 11.6% in a year’s time.
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