Eastman (EMN) Wraps Up Matrix Films & Premium Shield Buyout
Eastman (EMN) concludes the acquisition of Matrix Films and its affiliate Premium Shield Limited. The deal is expected to boost its paint protection film pattern development capabilities.
Eastman Chemical Company EMN has completed the purchase of the business and assets of Matrix Films, LLC and its U.K. affiliate, Premium Shield Limited, marketer of Premium Shield performance films, including its extended line of automotive film patterns. The company announced the acquisition last month.
The terms and conditions of the transaction have not yet been revealed. The newly acquired business will be part of the Performance Films business belonging to Eastman’s Advanced Materials segment.
The buyout is expected to broaden the company’s auto base in North America, Europe and the Middle East, strengthen its capabilities in paint protection film pattern development and create growth synergies. Eastman noted that the completion of this acquisition is an important step in its commitment as a leading innovator and service partner for paint protection and window film professional installers.
Shares of Eastman have rallied 30.5% in a year compared with the industry’s rise of 21.3%. The estimated earnings growth rate for the company for the current year is pegged at 49.6%.
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In the last quarter’s earnings call, Eastman said that it expects continued momentum as it gains from innovation, strong end-market recovery, and cost discipline from its operations transformation program. It expects adjusted earnings per share of $8.8-$9.2 for 2021. It also anticipates free cash flow to exceed $1.1 billion for the year, which would be the fifth consecutive year of free cash flow above $1 billion.
Eastman Chemical Company Price and Consensus
Zacks Rank & Stocks to Consider
Currently, Eastman carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Olin Corporation OLN, Methanex Corporation MEOH and Tronox Holdings PLC TROX, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has a projected earnings growth rate of 639.3% for the current year. The company’s shares have skyrocketed 269.6% in a year.
Methanex has a projected earnings growth rate of 422.8% for the current year. The company’s shares have climbed 90.6% in a year.
Tronox has a projected earnings growth rate of 319.6% for the current year. The company’s shares have rallied 197% in a year.
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