Trinseo (TSE) Signs an Agreement to Acquire Heathland B.V.
Trinseo S.A. TSE recently signed an agreement to acquire Heathland B.V., a leading collector and recycler of post-consumer (PCR) and post-industrial (PIR) plastic wastes in Europe.
Heathland converts PCR and PIR polymethyl methacrylate, polycarbonate, acrylonitrile butadiene styrene, polystyrene and thermoplastic waste, as a plastic waste collector and recycler based in Utrecht, Netherlands.
Trinseo collects, pre-treats and processes plastic waste materials using mechanical and chemical recycling processes. It also captures the materials’ maximum value by transforming them into high quality recycled raw materials for a wide range of high-end applications.
Heathland is an established player in Europe with several key projects, including MMATwo and Revolution, funded by the Horizon 2020 program of the European Commission.
The acquisition is an important milestone in Trinseo’s transformation into a specialty materials and sustainable solutions provider. As the company’s extensive sustainable product portfolio continues to grow, the buyout will facilitate meeting market demand by securing a reliable source of recycled feedstock through the addition of a plastic waste collection business and improving the ongoing development of plastic-recycling technologies.
Shares of Trinseo have increased 27.3% in the past year compared with a 35.6% decline of the industry.
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In its third-quarter call, Trinseo stated that it sees net income from continuing operations in the range of $336-$376 million for 2021. Adjusted EBITDA is forecast in the band of $750-$800 million.
The company expects cash from operations of $420-$445 million and a free cash flow of $300-$325 million for 2021.
Trinseo also announced the planned divestiture of the styrenics businesses. It intends to launch a formal sales process in first-quarter 2022.
Zacks Rank & Key Picks
Trinseo currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Celanese Corporation CE, The Chemours Company CC and Nucor Corporation NUE.
Celanese has an expected earnings growth rate of 139.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 8.7% upward in the past 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 12.7%, on average. The stock has surged around 24.7% in a year. CE currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in all of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. CC has increased around 25.8% over a year. CC currently sports a Zacks Rank #1.
Nucor has a projected earnings growth rate of 583.2% for the current year. The consensus estimate for the current year has been revised 7.2% upward in the past 60 days.
Nucor beat the Zacks Consensus Estimate for earnings in two of the last four quarters. NUE has a trailing four-quarter earnings surprise of 2.74%, on average. The company’s shares have gained around 103.3% in a year. It currently carries a Zacks Rank #2.
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