U.S. Markets close in 3 hrs 15 mins

Wired News - Global Specialty Chemicals Company Platform Specialty Products Divests Agricultural Solutions Business Arysta LifeScience to India's UPL Corp.

Stock Monitor: WD-40 Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 24, 2018 / If you want access to our free research report on Platform Specialty Products Corp. (NYSE: PAH) ("Platform"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PAH as the Company's latest news hit the wire. On July 20, 2018, the Company announced the divestment of its Agricultural Solutions business to India's UPL Corp. Ltd. Platform's divested Agricultural Solutions business includes Arysta LifeScience Inc. and its subsidiaries (collectively referred to as "Arysta"). UPL Corp. Ltd is a wholly-owned subsidiary UPL Ltd. The all-cash deal is valued at approximately $4.2 billion. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for WD-40 Company (NASDAQ: WDFC), which also belongs to the Basic Materials sector as the Company Platform Specialty Products. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=WDFC

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Platform Specialty Products most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=PAH

About Arysta LifeScience Inc.

Platform's Arysta develops, markets, and distributes innovative, high-quality chemical crop protection solutions, including BioSolutions and Seed Treatment for the agro-science and health & nutrition science market. Platform acquired Arysta in 2015 and merged it with the businesses of its previously-acquired crop protection Companies, Agriphar and the Chemtura AgroSolutions (acquired in 2014).

For the twelve months ended March 31, 2018, Arysta's operating revenues were approximately $2 billion and its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $424 million.

Details of the Transaction

The divestment is part of Platform's strategy of re-organization of its businesses and the first step towards segregating its Agricultural Solutions and Performance Solutions businesses. This move will enable it to establish itself as a leading player in the global off-patent crop protection business.

UPL Corp. has agreed to pay $4.2 billion in cash for Arysta's businesses. A wholly-owned subsidiary of the Abu Dhabi Investment Authority ("ADIA") and private equity firm TPG Capital Asia ("TPG") have partnered with UPL Corp. to complete the acquisition of Arysta. ADIA and TPG have together agreed to invest $1.2 billion ($600 million each) against an approximately 2% joint stake in UPL Corp.

UPL plans to merge the businesses of UPL Corp. and Arysta and form ‘New UPL’. The deal is expected to create one of the largest crop protection Companies in the world. UPL will expand its product portfolio, gain access to various patented technologies, and expand its distribution network across the globe with this acquisition. UPL has arranged financing of approximately $3 billion from MUFG Bank, Ltd and Coöperatieve Rabobank U.A. (Hong Kong Branch) to complete the acquisition of Arysta. UPL expects that the deal will be accretive to its earnings per share (EPS) by INR10 to INR12 in FY20. UPL also expects annual run-rate synergies of over $200 million on completion of the deal.

The divestment is expected to close either by the end of FY18, or in early FY19, subject to the receipt of regulatory approvals and other closing conditions.

Name Change Post Divestment

Once the transaction is completed, Platform plans to re-emerge with a new identity and will be known as Element Solutions Inc. ("Element"). The Company will trade on the New York Stock Exchange (NYSE) with the ticker "ESI" on the successful completion of the divestment of Arysta. In its new avatar as Element, it plans to merge current businesses with its existing Performance Solutions segment, which includes a portfolio of specialty chemicals businesses catering to the electronics, industrials, and energy end-markets. Element will concentrate on building its core business via organic growth and strategic acquisitions.

Platform plans to utilize the proceeds from the divestment to pay off its existing debt. The Company's Board has also authorized share buybacks of around $750 million on completion of the divestment. Element is expected to have a net debt of less than $1 billion, and an annual pro-forma adjusted EBITDA of $425 million to $445 million, based on its existing adjusted EBITDA for FY18. The divestment is expected to result in estimated annual run-rate cost savings of nearly $25 million in the next 12 months to 18 months.

On a separate note, the Company also announced the induction of Nichelle Maynard-Elliott to the Company's Board, effective August 15, 2018. Maynard-Elliott is currently with Praxair, Inc. as their Executive Director of Mergers & Acquisitions, and has been a practicing lawyer prior to joining Praxair.

Management Quotes

Commenting on the divestment, Rakesh Sachdev, Chief Executive Officer (CEO) of Platform, said:

"This transaction marks an inflection point for Platform. At closing, we will have achieved our separation and the objectives associated with it - setting up Arysta for long-term success and improving the balance sheet of Platform to position the Company well for future growth. We will have a terrific portfolio of businesses at Element Solutions, an outstanding team, and numerous opportunities in front of us."

Jai Shroff, Group CEO and Executive Director, UPL, stated:

"This transaction is a ‘perfect match' with powerful synergies across geographies, crops, and products, strengthened through best-in-class manufacturing and differentiated R&D capabilities. We are bringing together two winning teams with strong values and successful track records to create a strong platform for our mission of Farmer First and sustainable growth."

About UPL Ltd

Headquartered in Mumbai, India, UPL is one of the leading global crop protection products Companies that offers protection against most pest infection sources. The Company has a diversified business portfolio covering not only agrochemicals but also seeds, seed treatment solutions, post-harvest solutions, and industrial chemicals. It has a presence in over 130 countries, including 33 manufacturing units in 11 countries, and is focused on agro-based economies like India and Brazil. The Company had a market capitalization of $4.6 billion as on June 30, 2018, and its operating revenues were approximately $2.7 billion for FY18.

UPL Corp. is a wholly-owned subsidiary of UPL Ltd and has a portfolio of a diversified crop protection and post-harvest solution business with an established presence and leading market position in major agricultural regions worldwide.

About Platform Specialty Products Corp.

West Palm Beach, Florida-based Platform is a global, diversified producer of high technology specialty chemical products, and provider of technical services. The Company formulates a wide range of specialty chemicals aimed at several industries, including agricultural, animal health, electronics, graphic arts, plating, water treatment, and offshore oil production and drilling.

Stock Performance Snapshot

July 23, 2018 - At Monday's closing bell, Platform Specialty Products' stock slightly fell 0.26%, ending the trading session at $11.72.

Volume traded for the day: 6.37 million shares, which was above the 3-month average volume of 3.17 million shares.

Stock performance in the last month - up 1.21%; previous three-month period - up 14.57%; past six-month period - up 3.99%; and year-to-date - up 18.15%

After yesterday's close, Platform Specialty Products' market cap was at $3.61 billion.

The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

SOURCE: Active-Investors