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DuPont (DD) Completes Four Clean Water Technology Buyouts

Zacks Equity Research

DuPont de Nemours, Inc. DD announced that it completed the acquisitions of inge GmbH, Memcor, Desalitech and OxyMem Limited.

With the addition of the inge GmbH and Memcor portfolios, DuPont becomes the leading ultrafiltration supplier across various market segments such as residential, utility, wastewater, industrial and other specialty solutions. Notably, DuPont purchased inge GmbH, an ultrafiltration membrane company, from BASF, and acquired Memcor, the ultrafiltration and membrane bioreactor technologies unit, from Evoqua Water Technologies Corp.

With the addition of closed-circuit reverse osmosis (CCRO) from Desalitech, DuPont can now offer more choices and versatility to customers to address challenges related to water shortages and purification. Notably, Desalitech’s CCRO technology addresses growing needs for high water recovery in core market segments.

Further, DuPont can now offer better support to customers that are looking to minimize footprint and energy requirements for secondary treatment of wastewater, with the emerging technologies from OxyMem. Notably, OxyMem manufactures and develops the Membrane Aerated Biofilm Reactor (MABR) technology for the treatment and purification of industrial and municipal wastewater.

Notably, these four acquisitions support the company’s goal of increasing access to the products and technologies needed to meet current and future challenges facing global customers, such as the growing need to recycle water and reducing energy demands to generate clean water.

Moreover, the acquisitions extended the portfolio of DuPont and improved its capacity to drive innovation and offer better customer service. Further, these are likely to help in lowering the life cycle costs of clean water.

Per Management, the four acquisitions are in sync with its strategy of being the leading water technology supplier to better serve changing needs of its global customers. Further, the company looks forward to work with partners and customers to improve access to new separation and purification technologies to address the global water crisis.

The company’s shares have dipped 63.8% over the past year compared with the 21.7% decline recorded by the industry.

 

 

Last month, DuPont reaffirmed 2019 guidance for revenues at $21.5 billion and adjusted earnings per share at $3.77-$3.82. It expects operating EBITDA to be at the lower end of the previously mentioned range due to temporary supply-chain disruptions in the Safety & Construction, and Electronics & Imaging units.

In October, the company had expected 2019 organic sales to be modestly down year over year on weak demand. Nevertheless, it will likely gain from cost and productivity actions, innovation investments, and product development.

DuPont de Nemours, Inc. Price and Consensus

 

DuPont de Nemours, Inc. Price and Consensus

DuPont de Nemours, Inc. price-consensus-chart | DuPont de Nemours, Inc. Quote

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the basic materials space are Daqo New Energy Corp. DQ, Pan American Silver Corp. PAAS and Sibanye Gold Limited SBGL.

Daqo New Energy has a projected earnings growth rate of 315.4% for 2020. The company’s shares have rallied 117.6% in a year. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pan American Silver has an estimated earnings growth rate of 46.7% for 2020. It currently flaunts a Zacks Rank #1. The company’s shares have gained 54.4% in a year.

Sibanye Gold has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 587.5% for 2020. The company’s shares have soared 260.8% in a year.

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