Celanese (CE) Signs Agreement to Acquire Omni Plastics
Celanese Corporation CE inked a definitive agreement to buy Omni Plastics and its subsidiaries, including the distributor Resinal de Mexico.
Celanese expects the transaction to close in first-quarter 2018, subject to customary closing conditions and regulatory approvals. Financial terms of the deal however, were not disclosed by the company.
Omni Plastics specializes in custom compounding of various engineered thermoplastic materials, which is a material of choice in various markets including electrical and electronics, automotive, industrial and consumer goods. The buyout reinforces Celanese’s presence in these strategic areas and expands presence in lawn/garden, furniture, filtration and other specialty materials application. The acquisition also strengthens Celanese’s global asset base by adding compounding capacity in the Americas, which will enable the company to continue supporting a diverse and growing customer base.
Celanese plans to integrate the Omni Plastics thermoplastic compounding product portfolio and production capabilities into its engineered materials business. Both Omni Plastics and Celanese will continue to operate as independent businesses until the deal closes.
Shares of Celanese have gained 4.4% in the past three months, outperforming the industry’s 3.3% growth.
Celanese, in October, said that it expects business and productivity momentum to offset fourth-quarter weakness. Celanese is optimistic that it can grow its adjusted earnings per share for 2017 toward the top end of its earlier announced guidance range of 9-11%.
Celanese’s strategic measures including operational cost savings through productivity actions and pricing initiatives are likely to lend support to its earnings in 2017. The company is also poised to gain from growth initiatives that include acquisitions. Moreover, Celanese remains focused on returning value to shareholders.
Celanese Corporation Price and Consensus
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Other Stocks to Consider
Celanese currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Westlake Chemical Corporation WLK, Daqo New Energy Corp. DQ and Kronos Worldwide Inc. KRO, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake Chemical has an expected long-term earnings growth rate of 10.6%. Its shares have moved up 84.5% year to date.
Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have surged a whopping 160.4% year to date.
Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have rallied 117.3% year to date.
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