Chemical Finance Digest, April 9-13

Topping the headlines last week, Cytec announced plans to acquire Umeco, a composites maker, for $439 million. The purchase price represents a 46.3% premium on Umeco’s closing share price on April 11, the day before the announcement. The deal expected to be immediately accretive to Cytec’s earnings.

 

In other M&A news, private equity firm SK Capital and medical device company IBA have formed a medical isotopes distributor, while Arkema is rumored to be shopping its tin stabilizers business.

 

Perhaps portending a good earnings season to come, Dow Chemical has raised its quarterly dividend by 28%, to 32 cts/share. H.B. Fuller has also raised its dividend, by 13%, to 8.5 cts/share.

 

Momentive Specialty Chemicals is planning to issue $450 million in new debt, in the form of first-priority senior secured bonds. The bonds will carry an interest rate of 6.625% and will mature in 2020. Proceeds from the new issue will be used in a debt exchange, ultimately repaying floating rate term loans that were due next year.

The week ahead will see the real start of earnings season. Here's a rundown of who is scheduled to report (analysts' EPS estimates in parenthesis):

Wednesday: Albemarle ($1.16/share)
Thursday: DuPont ($1.55/share); PPG Industries ($1.68/share); Sherwin-Williams (88 cts/share); Cytec ($1.14/share).
Friday: Sensient Technologies (57 cts/share).

Estimates courtesy Thomson Reuters (New York).

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