Chemical Finance Digest, Dec. 12-16
12:00 PM MST | December 20, 2011 | By VINCENT VALK
Topping the headlines last week, Apollo Management announced plans to acquire Taminco from another private equity firm, CVC Capital Partners. Apollo beat out several other private equity firms for Taminco, which was put on the block in September. CVC bought Taminco in 2007 for about $1.05 billion, and briefly considered an IPO for the business, which was scuttled due to the financial crisis in 2008 and 2009.
Earnings news last week focused largely on the outlook for next year. DuPont’s outlook beat Wall Street expectations, even as the company cut guidance for the fourth quarter. DuPont is expecting 2012 earnings of $4.20-$4.40/share, a 7%-12% increase from this year. Meanwhile, Soluta said it expects earnings of $2-$2.30/share next year, a flat-to-15% increase over 2011. The company also initiated a 15 cts/share annual dividend.
Meanwhile, ACC says that economic growth will continue to be sluggish next year, with 1.7% GDP growth expected in the U.S. and chemicals output growth of 1.2%. Both figures would represent declines from this year’s growth totals.
In debt news, Ecolab announced that it will redeem all of Nalco’s outstanding senior debt, which is worth about $1.5 billion. Ecolab issued $3.75 billion new debt in conjunction with the Nalco acquisition, which closed earlier this month. The new Ecolab debt carries a lower interest rate than the older Nalco debt.
In macroeconomic news, U.S. industrial production fell 0.2% in November, mostly due to some backtracking in the automotive sector after several positive months. However, sales in motor vehicles remain solid and “the prognosis is therefore good, but not great” for industrial production generally, says IHS Global Insight economist Michael Montgomery.
The week ahead will see the latest revision of third-quarter U.S. GDP growth figures.
The Chemical Finance Digest will be on hiatus next week due to the Christmas holiday. I’d like to wish all readers a very happy holiday and a healthy New Year. We’ll be back in 2012!