Celanese Corporation CE completed the acquisition of Nouryon’s redispersible polymer powders business under the Elotex brand.
Celanese announced its plans to acquire Elotex on Jan 30. Notably, financial details of the transaction will be reported as part of the company’s regular quarterly financial disclosure. Hpmc Cellulose Ether
Notably, with the competition of the buyout, Celanese took the ownership of global production facilities of Nouryon for redispersible polymer powders throughout Europe and Asia. It also acquired all products under the Elotex portfolio and all customer agreements, technology and commercial facilities worldwide.
Celanese plans to incorporate Elotex’s product portfolio and manufacturing facilities into its global vinyl acetate ethylene (“VAE”) emulsion business to cater to the global product demand. The acquisition strengthens the company’s global leadership position in the VAE emulsions space, and supports customers in construction and building materials.
Elotex is one of the world’s leading producers of redispersible polymer powders for growing applications such as exterior thermal insulation composite systems (ETICS), self-leveling flooring and wall texturing smoothing/painting, cement tile adhesives and grouts, gypsum plaster and joint fillers, polymer binding systems, and cement and time-based renders. Notably, it has manufacturing facilities in Frankfurt, Geleen, Moosleerau and Shanghai.
Celanese’s shares have moved down 34.6% in the past year compared with the industry’s decline of 31.2%.
On the fourth-quarter 2019 earnings call, the company stated that it does not expect any meaningful improvement in demand conditions on a year-over-year basis in 2020. Moreover, it anticipates reaching 2020 adjusted earnings target of $11 per share on the back of factors within its control.
Celanese Corporation Price and Consensus
Celanese Corporation price-consensus-chart | Celanese Corporation Quote
Zacks Rank & Stocks to Consider
Celanese currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are DRDGOLD Limited DRD, Franco-Nevada Corporation FNV and Barrick Gold Corporation GOLD.
DRDGOLD has a projected earnings growth rate of 562.5% for 2020. The company’s shares have surged 179.5% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 42.5% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 41.2% for 2020. The company’s shares have gained 46.4% in a year.
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