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FMC Corp (FMC) Divests GSS Business to Envu for $350 Million
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FMC Corporation (FMC - Free Report) announced a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC, known as Envu. Dedicated to innovations that enhance environmental health, Envu will acquire the GSS business for $350 million, subject to closing working capital adjustment.
In November 2023, FMC disclosed its plans to explore strategic options for GSS, which offers a diverse range of products for non-crop markets such as golf courses, professional sports stadiums and pest control. As the company concentrates on innovating products and services for the global crop protection market, GSS no longer aligns with the company’s mid- or long-term strategic goals.
GSS is a profitable business with a strong growth history. FMC believes this agreement with Envu will provide the necessary attention and resources for GSS to continue thriving. The move will help the company focus solely on its core business.
Envu, acquired by international private equity firm Cinven in 2022, sees GSS as an opportunity to support its growth strategy while continuing to deliver innovations for customers in professional pest management, turf & ornamentals and more.
Envu is enthusiastic about joining forces with GSS, seeing significant synergies and potential for accelerated innovation from this combination. As a company that successfully transitioned from a carveout transaction, Envu believes it is the ideal partner to help GSS through this transition and maximize its collective potential.
The transaction is expected to close by 2024, pending regulatory approval and other customary closing conditions. FMC plans to allocate all proceeds from the sale to debt reduction.
BofA Securities acted as financial adviser and McCarter & English served as legal adviser to FMC. Barclays acted as financial adviser and Baker McKenzie served as legal adviser to Envu for the transaction. Further terms and conditions of the agreement are being kept under wraps.
FMC’s shares have plunged 41% in the past year against the industry’s 13% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) , and Axalta Coating Systems Ltd. (AXTA - Free Report) . Carpenter Technology and Eldorado Gold sport a Zacks Rank #1 (Strong Buy), and Axalta carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.35, indicating a year-over-year rise of 282%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 87.8% in the past year.
The Zacks Consensus Estimate for EGO’s current-year earnings is pegged at $1.09, indicating a year-over-year rise of 91.2%. EGO’s earnings estimates have gone up 10% in the past 60 days. EGO beat the consensus estimate in each of the last four quarters, the average earnings surprise being 430.7%. The stock has rallied 49.7% in the past year.
The Zacks Consensus Estimate for Axalta's current-year earnings is pegged at $1.99, indicating a rise of 26.8% from the year-ago levels. AXTA beat the consensus in three of the last four quarters while missing it once, the average earnings surprise being 7%. The stock has rallied nearly 6.3% in the past year.
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FMC Corp (FMC) Divests GSS Business to Envu for $350 Million
FMC Corporation (FMC - Free Report) announced a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC, known as Envu. Dedicated to innovations that enhance environmental health, Envu will acquire the GSS business for $350 million, subject to closing working capital adjustment.
In November 2023, FMC disclosed its plans to explore strategic options for GSS, which offers a diverse range of products for non-crop markets such as golf courses, professional sports stadiums and pest control. As the company concentrates on innovating products and services for the global crop protection market, GSS no longer aligns with the company’s mid- or long-term strategic goals.
GSS is a profitable business with a strong growth history. FMC believes this agreement with Envu will provide the necessary attention and resources for GSS to continue thriving. The move will help the company focus solely on its core business.
Envu, acquired by international private equity firm Cinven in 2022, sees GSS as an opportunity to support its growth strategy while continuing to deliver innovations for customers in professional pest management, turf & ornamentals and more.
Envu is enthusiastic about joining forces with GSS, seeing significant synergies and potential for accelerated innovation from this combination. As a company that successfully transitioned from a carveout transaction, Envu believes it is the ideal partner to help GSS through this transition and maximize its collective potential.
The transaction is expected to close by 2024, pending regulatory approval and other customary closing conditions. FMC plans to allocate all proceeds from the sale to debt reduction.
BofA Securities acted as financial adviser and McCarter & English served as legal adviser to FMC. Barclays acted as financial adviser and Baker McKenzie served as legal adviser to Envu for the transaction. Further terms and conditions of the agreement are being kept under wraps.
FMC’s shares have plunged 41% in the past year against the industry’s 13% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) , and Axalta Coating Systems Ltd. (AXTA - Free Report) . Carpenter Technology and Eldorado Gold sport a Zacks Rank #1 (Strong Buy), and Axalta carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.35, indicating a year-over-year rise of 282%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 87.8% in the past year.
The Zacks Consensus Estimate for EGO’s current-year earnings is pegged at $1.09, indicating a year-over-year rise of 91.2%. EGO’s earnings estimates have gone up 10% in the past 60 days. EGO beat the consensus estimate in each of the last four quarters, the average earnings surprise being 430.7%. The stock has rallied 49.7% in the past year.
The Zacks Consensus Estimate for Axalta's current-year earnings is pegged at $1.99, indicating a rise of 26.8% from the year-ago levels. AXTA beat the consensus in three of the last four quarters while missing it once, the average earnings surprise being 7%. The stock has rallied nearly 6.3% in the past year.