Stock Monitor: Orchids Paper Products Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 29, 2018 / Active-Investors.com has just released a free research report on Stepan Co. (NYSE: SCL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=SCL as the Company's latest news hit the wire. On March 27, 2018, the Company disclosed that its Mexican subsidiary Stepan CDMX, S. de R.L. de C.V. had completed the acquisition of a portion of BASF's oleochemical surfactants business in Mexico from BASF Mexicana, S.A. de C.V. The Company had announced the acquisition of BASF's Mexican surfactant business in June 2017. 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 Orchids Paper Products Company (NYSE AMER: TIS), which also belongs to the Consumer Goods sector as the Company Stepan. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=TIS
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Stepan 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=SCL
Quotes from Management
Commenting on the completion of the deal, F. Quinn Stepan Jr., Chairman, President and CEO of Stepan Co., said:
"This acquisition supports the Company's growth strategy in Latin America. We believe this acquisition significantly enhances Stepan's market position and supply capabilities for surfactants in Mexico and positions us to grow in both the Consumer and Functional markets for surfactants."
Scott Thomson, Senior Vice President of BASF Care Chemicals - North America, added:
"We thank our Ecatepec employees for their contributions and wish them future success as part of the Stepan team. Moving forward, we will help customers in Mexico by continuing to provide home care, personal care, agricultural and industrial solutions, including optical effects, specialty co-surfactants, actives, emulsifiers and polymers."
The Mexican surfactant business of BASF
The Mexican surfactant business acquired from BASF was part of BASF's Care Chemicals division. Oleochemical surfactants are basically used in the manufacture of soaps and detergents as well as a range of home care and personal care products. The deal includes a portion of BASF's associated surfactants business including related intellectual property as well as the surfactant production facility in Ecatepec, Mexico. The surfactant production facility has a production capacity of 50,000 metric tons, a warehouse space of over 124,000 sq. ft., a large laboratory, an office space and is located near Mexico City. Stepan will also absorb most of the existing employees at this production facility on completion of the deal.
The deal is expected to be marginally accretive to the Company's earnings in FY18.
Rationale
BASF had decided to divest this asset so that its Care Chemicals business can focus on its core businesses in Mexico including home care, personal care, and industrial solutions portfolio, including optical effects, specialty co-surfactants, actives, emulsifiers and polymers. BASF's has clarified that its existing oleochemical surfactants business in the US, Europe, and Asia would not be impacted by this divestiture.
The acquisition is part of Stepan's strategy of growing its business in Latin America and enhancing its market presence in surfactants business in Mexico. The acquisition will allow the Company to expand its presence in the Consumer and Functional markets for surfactants in the Latin American country.
About Stepan Co.
Northfield, Illinois-based Stepan was founded in 1932 by Alfred C. Stepan Jr. It is a leading manufacturer of specialty and intermediate chemicals, including surfactants, specialty products, germicidal and fabric softening quaternaries, phthalic anhydride (P.A.), polyurethane polyols and special ingredients for the food, supplement, and pharmaceutical markets. The surfactants produced by the Company is a key ingredient in consumer and industrial cleaning compounds and in agricultural and oilfield solutions while the polyurethane polyols are manufactured by the Company are used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries. The Company has 18 manufacturing plants located in 11 countries throughout North and South America, Europe, and Asia.
About BASF, BASF Mexico, and BASF's Care Chemicals division
BASF is a German multinational chemical Company and the world's largest chemical producer by chemical sales. The Company's business is divided into five major segments - Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions, and Oil & Gas. The group's sales was approximately €64.5 billion for FY17.
The BASF Care Chemicals division produces a wide range of ingredients for personal care, hygiene, home care, industrial and institutional cleaning, agricultural and technical applications. It is a leading global supplier to the cosmetics, detergents, and cleaners' industry. Its products portfolio includes surfactants, emulsifiers, polymers, emollients, chelating agents, cosmetic active ingredients, and UV filters.
BASF Mexico is based in Mexico City and covers the markets in Central America and the Caribbean. The business unit has more than 2,500 employees and 12 production sites in this region.
Stock Performance Snapshot
March 28, 2018 - At Wednesday's closing bell, Stepan's stock was marginally up 0.90%, ending the trading session at $82.88.
Volume traded for the day: 74.01 thousand shares.
Stock performance in the last month - up 2.88%; previous three-month period - up 4.78%; past twelve-month period - up 5.45%; and year-to-date - up 4.95%
After yesterday's close, Stepan's market cap was at $1.91 billion.
Price to Earnings (P/E) ratio was at 18.20.
The stock has a dividend yield of 1.09%.
The stock is part of the Consumer Goods sector, categorized under the Cleaning Products industry. This sector was up 0.6% at the end of the session.
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
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors
