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Element Solutions Completes Sale of MacDermid Graphics Solutions

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Element Solutions Inc (ESI - Free Report) has announced the completion of the sale of its flexographic printing plate business, MacDermid Graphics Solutions, to XSYS for an enterprise value of roughly $325 million. XSYS is a global specialist provider in the flexographic printing sector.

An existing capital loss is expected to offset almost all of the taxable benefits from this transaction. The net proceeds are intended to be used to further reduce leverage and for general company objectives. The sale agreement was announced on Sept. 3, 2024.

This transaction enhances Element Solutions' portfolio in all major areas and results in a robust balance sheet. The company is enthusiastic about the potential for value-creating capital allocation moving forward.

Element Solutions has gained 7.8% over the past year against a 20.1% decline of its industry.

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For full-year 2025, the company expects adjusted EBITDA to be in the range of $520-$540 million and free cash flow conversion to be comparable year over year. It also expects first-quarter 2025 adjusted EBITDA to be approximately $125 million.

ESI’s Rank & Key Picks

ESI currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Methanex Corporation (MEOH - Free Report) and Axalta Coating Systems Ltd. (AXTA - Free Report)

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 218.2% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Methanex, which currently carries a Zacks Rank #2, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 85.2%, on average. MEOH’s shares have gained 1.5% over the past year. 

Axalta Coating Systems, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.3%, on average. AXTA’s shares have rallied 10.7% over the past year. 

 


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