) has landed a deal to divest its surface care business to
construction solutions provider LATICRETE for an undisclosed price.
The transaction, which is subject to regulatory clearances and
other closing conditions, is expected to company in late-June 2014.
DuPont's surface care business offers products under StoneTech
Professional, Stone Care and Paver Armor Pro monikers. It provides
an array of solutions to protect and preserve stone and tile
DuPont feels that the surface care business can effectively pursue
its potential and address market needs though this transaction.
LATICRETE has a significant exposure in the stone and tile market
and offers complementary products.
Following the takeover, LATICRETE will merge StoneTech, Stone Care
and Paver Armor Pro branded products with its existing offerings
that are already placed in professional and retail channels
DuPont is disposing a number of assets as it is gradually shifting
its focus to high growth businesses, including agriculture. The
company is spinning off its struggling Performance Chemicals
division (expected to close by mid-2015) that consists of Titanium
Technologies and Chemicals & Fluoroproducts businesses.
Moreover, DuPont is divesting its glass laminating solutions and
vinyls business to Japan-based fibers maker Kuraray. The company
also sold its performance coatings business to equity firm
The Carlyle Group
) last year.
DuPont is expected gain from incremental opportunities in its
agriculture business in 2014, backed by higher demand for its corn
seeds and crop protection products. The company is witnessing
healthy demand for its corn hybrids and expects continued strong
growth in crop protection driven by new products. DuPont has
numerous new products in its pipeline that are expected to create
value for its customers.
DuPont is a Zacks Rank #3 (Hold) stock.
Other companies in the chemical space worth considering include
Compass Minerals International Inc.
). While Compass Minerals retains a Zacks Rank #1 (Strong Buy),
PetroLogistics sports a Zacks Rank #2 (Buy).
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