Yahoo Finance Chemours (CC) to Divest Glycolic Acid Business to PureTech
The Chemours Company CC agreed to sell its Glycolic Acid business to PureTech Scientific Inc. for $137 million in cash. PureTech Scientific is a company founded and backed by Iron Path Capital, a private equity firm focused on lower-middle market investments in the specialty industrial and healthcare sectors.
PureTech Scientific is positioning itself to become a leader in organic synthesis of ultra-high purity alpha hydroxy acids for the Life Sciences and Specialty Chemical industries with this acquisition. Subject to regulatory clearances and other normal closing conditions, the transaction is scheduled to close by the third quarter of 2023.
Chemours' Glycolic Acid portfolio contains technical and cosmetic grades that can be used in a variety of applications. As ardent stewards of these brands, the company believes that the portfolio complements PureTech Scientific's growth strategy, which is reflected in the terms of the agreement.
Shares of Chemours have lost 20.2% over the past year compared with the 8.5% decline of its industry.
Image Source: Zacks Investment Research
In April, the company reiterated its guidance for adjusted EBITDA and free cash flow for 2023. It anticipates adjusted EBITDA for 2023 to be between $1.20 billion and $1.30 billion. It also expects free cash flow of more than $350 million, including about $400 million in capital expenditures.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Koppers Holdings Inc. KOP, Gold Fields Limited GFI and Linde plc LIN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of 13.64%, on average. KOP has gained 12% in a year.
The Zacks Consensus Estimate for Gold Fields’ current-year earnings has been revised 23.5% upward in the past 60 days. The consensus estimate for current-year earnings for GFI is currently pegged at $1.05, indicating year-over-year growth of 8.3%. The company’s shares have gained 63.8% in the past year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 3.8% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9%, on average. The company’s shares have gained 7.2% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gold Fields Limited (GFI) : Free Stock Analysis Report
Koppers Holdings Inc. (KOP) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
The Chemours Company (CC) : Free Stock Analysis Report
