Element Solutions Inc. ESI announced the acquisition of DMP Corporation the launch of MacDermid Envio Solutions.
Notably, DMP is a leading provider of turnkey wastewater treatment, and recycle and reuse solutions throughout multiple manufacturing industries. Further, the acquisition of DMP expands Element Solutions’ investment in technology to offer innovative solutions, helping customers manage the existential issue of sustainability for manufacturing businesses worldwide.
Notably, DMP will be combined with the existing Chemtech metals recycling business of Element Solutions to form MacDermid Envio Solutions.
MacDermid Envio Solutions is a new business focused on helping customers profitably reduce the environmental impact through proprietary water treatment and metals recycling solutions. Moreover, the business is anticipated to report under Industrial Solutions vertical of Element Solutions but is expected to sell across wider end markets of the company.
Shares of Element Solutions moved up 20.9% in a year against the industry’s 7.4% decline.
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On its second-quarter earnings call, the company noted that it expects adjusted EBITDA of $80 million for the third quarter of 2020. Moreover, it anticipates generating free cash flow of more than $185 million for the year.
Element Solutions also noted that it is difficult to predict macroeconomic conditions or operating results at this time due to the impact of the coronavirus outbreak.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Harmony Gold Mining Company Limited HMY, Eldorado Gold Corporation EGO, andRoyal Gold, Inc. RGLD.
Harmony Gold has a projected earnings growth rate of 264.3% for the current year. The stock has rallied around 111% in a year. It currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eldorado Gold has a projected earnings growth rate of 2225% for the current year. The company’s shares have gained around 44% in a year. It currently has a Zacks Rank #2.
Royal Goldhas an expected earnings growth rate of 62.1% for 2020. The company’s shares have gained 7.4% in the past year.It is presently a Zacks #2 Ranked player.
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