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Chemical Finance Digest, July 9
3:09 PM MDT | July 9, 2012 | By VINCENT VALK
Topping the headlines last week, Linde will acquire Lincare, a U.S. homecare health company, for $4.6 billion, or $41.50/share. Lincare, which grew out of Linde’s homecare medical systems division nearly a century ago, is a leader in the respiratory homecare industry. It had sales of $1.84 billion in 2011.
Eastman has completed its $4.8 billion acquisition of Solutia. Eastman will align itself into five segments in light of the deal’s closure: additives and functional products, adhesives and plasticizers, advanced materials, fibers, and specialty fluids and intermediates.
Arkema has sold its PVC business to the Klesh Group, a private equity firm, for an undisclosed sum. The new company will be named Kem One, and Klesh Group has plans to invest E400 million to improve its manufacturing and R&D capabilities.
Earnings at H.B. Fuller fell on charges related to the Forbo acquisition, however, the company raised its full-year estimates. Meanwhile, Omnova earnings rose 13% year-on-year as price increases offset volume declines.
Monsanto has issued $500 million in long-term senior debt, due 2022 and 2042, in a move to refinance $486 million in debt due in August. S&P has rated the debt ‘A+,’ in line with Monsanto’s corporate credit rating. S&P has rated Cabot’s $600 in unsecured bonds ‘BBB+,’ while Moody’s has rated them ‘Baa2.’ The notes will be used to fund the $1.1 billion Norit acquisition. Meanwhile, S&P is has raised CF Industries’ credit rating one notch, to ‘BBB-.’
In macroeconomic news, the U.S. Labor Department’s June jobs report was disappointing, showing an economy that added only 80,000 jobs. The report increases the pressure for action on the economy, especially on the part of the Federal Reserve, according to IHS Global Insight economist Nigel Gault.