Univar Wraps Up Earthoil Acquisition, Expands Personal Care

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Univar Inc.UNVR has successfully completed the previously announced acquisition of Earthoil Plantations Limited through its fully-owned subsidiary, Univar Ltd.

Earthoil was a subsidiary of Treatt plc that makes and supplies innovative ingredient solutions for fragrance, flavor, consumer products and beverage industries. It generated roughly $11 million in annual sales last year.

According to Univar, Earthoil will become part of the company's personal care business and operate normally while the process of integration is completed.

The buyout represents Univar's disciplined approach toward investment in assets that can be leveraged across its personal care vertical in multiple regional segments. It is also a major step for Univar's global and European natural beauty and personal care market. It enables the company to add a natural ingredient product portfolio and address the needs of customers and key supplier partners.

In first-quarter 2018, Univar logged a profit (on a reported basis) of $65.4 million or 46 cents per share, rising almost three-fold from $22.6 million or 16 cents a year ago. Barring one-time items, earnings came in at 42 cents per share in the quarter, surpassing the Zacks Consensus Estimate of 38 cents.

The company expects strong core business performance in the second quarter of 2018 and projects a high single digit growth in adjusted EBITDA.

Moreover, Univar sees adjusted EBITDA growth of low-double digits for full-year 2018. Moreover, the company, last month, raised its adjusted earnings expectations to the range of $1.65-$1.85 per share from the previous guidance of $1.60-$1.80.

Univar Inc. Price and Consensus

Univar Inc. Price and Consensus | Univar Inc. Quote

Zacks Rank & Other Stocks to Consider

Univar currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks worth considering in the basic materials space are The Chemours Company CC , FMC Corporation FMC and Westlake Chemical Corporation WLK , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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