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DuPont Exercises Option to Acquire 100% Ownership of OxyMem

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DuPont de Nemours, Inc. (DD - Free Report) recently announced that it has exercised the option to acquire all outstanding shares of OxyMem Limited. The transaction is slated to close before Dec 31, 2019. The company already owns 31% of OxyMem.

OxyMem, founded in 2013, employs more than 60 staff and has a manufacturing facility situated in Athlone, Ireland. It manufactures, develops and sells Membrane Aerated Biofilm Reactor (MABR) technology for industrial and municipal wastewater treatment and purification.  

Per DuPont’s management, MABR offers differentiated and unique performance for secondary wastewater treatment over existing technologies. In addition to DuPont’s MEMCOR MBR product, this emerging technology offer more solutions for customers seeking to minimize footprint and energy requirements for secondary wastewater treatment. Also, it improves system performance using other conventional water purification, reuse and recovery technologies.

DuPont’s shares have declined 56.6% over the past year against the 2.2% growth recorded by the industry.

DuPont, in October, narrowed its adjusted earnings per share guidance to the range of $3.77-$3.82 for 2019 from its prior view of $3.75-$3.85. The company continues to see organic sales for the year to be modestly down from the last year as weak demand is expected to affect its full-year organic sales.

Nevertheless, the company will gain from cost and productivity actions, investment in innovation, and new product development.

DuPont de Nemours, Inc. Price and Consensus

Zacks Rank & Stocks to Consider

DuPont currently carries a Zacks Rank #3 (Hold).  

Some better-ranked stocks in the basic materials space are General Moly, Inc. , Franco-Nevada Corporation (FNV - Free Report) and Sandstorm Gold Ltd (SAND - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

General Moly has an expected earnings growth rate of 12.5% for the current fiscal year. The company’s shares have gained 9% in a year’s time.

Franco-Nevada has a projected earnings growth rate of 45.3% for 2019. The company’s shares have rallied 41% over a year.

Sandstorm Gold has an estimated earnings growth rate of 166.7% for the current year. Its shares have moved up 55.6% in the past year.

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