|Bid||64.14 x 22800|
|Ask||64.10 x 59200|
|Day's Range||63.32 - 64.22|
|52 Week Range||25.68 - 66.70|
|Beta (5Y Monthly)||1.81|
|PE Ratio (TTM)||6.63|
|Earnings Date||Mar 11, 2021|
|Forward Dividend & Yield||0.95 (1.48%)|
|Ex-Dividend Date||Aug 28, 2020|
|1y Target Est||64.56|
Announcement: Moody's says acquisition by Lanxess is credit positive for ASP Emerald Holdings, LLCGlobal Credit Research - 17 Feb 2021New York, February 17, 2021 -- Moody's Investors Service says Lanxess AG's (Baa2, stable) acquisition of ASP Emerald Holdings, LLC (B2 stable) (dba Emerald Performance Materials) for an enterprise value of $1.075 billion (approximately E885 million) in cash is credit positive for Emerald as they are being acquired by a company with a much stronger financial profile, but has no impact on the company's ratings or outlook. Emerald is owned by private equity sponsor, American Securities, LLC, which acquired the company from Sun Capital Partners in 2014.
Rating Action: Moody's affirms Lanxess' Baa2 rating, maintains stable outlookGlobal Credit Research - 15 Feb 2021Frankfurt am Main, February 15, 2021 -- Moody's Investors Service ("Moody's") has today affirmed Lanxess AG's ("Lanxess") Baa2 long-term issuer rating, its Baa2 senior unsecured and backed senior unsecured bond ratings and its (P)Baa2 senior unsecured MTN programme rating. Concurrently, Moody's affirmed the Ba1 rating of Lanxess' preferred stock notes.
(Bloomberg) -- Lanxess AG agreed to buy Coca-Cola Co.-supplier Emerald Kalama for $1.08 billion as the specialty chemicals maker advances the transformation of what was once a hodgepodge of chemical assets spun out of Bayer AG.The purchase from private-equity firm American Securities adds a supplier of preservatives used in food and drinks, after Lanxess passed on the $4.6 billion sale of Lonza Group AG’s Specialty Ingredients business. Emerald Kalama adds a company in Lanxess’s sweet spot of anti-bacterial solutions, without overpaying, Chief Executive Officer Matthias Zachert said.Lanxess has built a pipeline of 10 possible targets and is opting for a more gradual approach, Zachert said, rather than betting the farm on Lonza’s chemicals division, which was bought this month by Bain Capital and Cinven.“I’m not entering an acquisition phase looking solely at one target,” he said, declining to discuss specific targets. “That’s something that always leads to a situation where you over pay. This is not my style.”Lanxess rose as much as 6.3% in Frankfurt, and was up 4.5% at 63.50 euros at 2:59 p.m.Reasonable PriceThe Cologne-based company is paying about nine times earnings, after taking into account synergies following Emerald Kalama’s integration. The price “looks reasonable” in light of last week’s disposal by Lonza for an implied 13 times, Commerzbank AG analyst Michael Schaefer said.The sale had also attracted interest from buyout firms HIG Capital, Rhone Capital and TPG, Bloomberg News reported in December. Morgan Stanley and Jefferies advised American Securities on the deal.The divestment marks American Securities’ exit from Emerald Performance Materials, a diversified group it bought in 2014 and has broken up. Dystar Global Holdings purchased Emerald’s polymer additives unit in 2016, while Huntsman Corp. bought the resin-ingredients business earlier this year.The transaction also suggests industrial companies are eying mergers in advance of developed economies picking up in the second half as the coronavirus pandemic wanes. The value of all deals year-to-date in North America, at $710 billion, is 39% higher than in the same period a year earlier, according to data compiled by Bloomberg. Emerald Kalama generates 45% of its revenue in the region, while Lanxess makes about 23%.Lanxess shares have outperformed other European chemical rivals since March last year, when the pandemic began to take root on the continent. The German company has climbed 67% in the period, almost twice as much as the Stoxx 600 Chemicals Index.What Bloomberg Intelligence says:We look for industry consolidation, as the stronger players flourished during the pandemic and weaker competitors struggled.Christopher Perrella, senior analyst.Founded in 2004, Zachert indicated Lanxess is only about halfway through its transformation, after selling the synthetic rubber and other commodity businesses. Returns have improved to 14% from 4%, even in the face of the Covid-19 pandemic.“The journey is not finished yet,” said Zachert, who just signed another five-year contract. “I see a company that’s halfway there.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.