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Univar Inks Distribution Deal With Buckman, Expands Footprint

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Univar Inc. announced that it has been selected as Buckman’s distributor in the metalworking and lubricant markets in the United States and Canada. The company was awarded the deal for Buckman’s full range of high-performance additives, microbicides, dispersing agents and deposit control products.

Univar was chosen by Buckman owing to its large-scale distribution capabilities, innovative digital technologies and leading supply chain network.

Buckman has an industry-leading portfolio of emulsion breakers, microbicides, deposit control and dispersing agents, heavy metal precipitants, enzymatic solutions and defoamers. Many of its microbicide solutions are used in controlling microbial growth in a number of industrial applications.

The deal further enhances Univar’s ability to serve the rapidly-growing lubricants and metal working markets. The partnership in the lubricant and metalworking market is expected to provide customers with a wider catalog. The companies are committed to develop new technology and service solutions.

Shares of Univar have lost around 20.2% in the past year compared with the industry’s decline of 18.8%.

 



Univar, in its third-quarter earnings call, stated that it expects foreign exchange headwinds and challenges in Canada to dampen growth in the fourth quarter. The company expects fourth-quarter adjusted EBITDA to be flat compared with year-ago quarter’s results. The guidance also considers demand softness in certain markets.

For 2018, Univar anticipates adjusted EBITDA growth of high single-digit while adjusted earnings per share are projected at roughly $1.60 per share, reflecting an increase of 15.1% from the prior-year quarter’s tally.

Revenues and gross profit in USA and EMEA segments increased year over year in the third quarter. However, sales and gross profit in Canada and Rest of World units declined year over year.

Univar Inc. Price and Consensus

 

Univar Inc. Price and Consensus | Univar Inc. Quote

 

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc (CF - Free Report) , Methanex Corporation (MEOH - Free Report) and The Mosaic Company (MOS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained 24.5% in the past year.

Methanex has an expected long-term earnings growth rate of 15%. Its shares have rallied 20.8% in a year’s time.

Mosaic has an expected long-term earnings growth rate of 7%. The company’s shares have rallied 58.9% in the past year.

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