Company News
November 7, 2018
Leggett to Acquire Elite Comfort Solutions
– Combined company will be leading provider of differentiated products for the bedding industry – Significantly expands presence in growing specialty foam and hybrid boxed bed market segment – Opportunity to leverage Elite Comfort Solutions’ substantial and proprietary R&D capabilities and technologies – ECS Fiscal Year 2018 sales of $611 million; EBITDA margins accretive to company average – Expect to finance with expanded commercial paper program and $500 million 5-year term loan – Leggett & Platt reiterates commitment to dividend track record and financial strength – Conference call scheduled for November 7th at 8:30 a.m. Eastern (7:30 a.m. Central) 06:30 ET CARTHAGE, Mo., Nov. 7, 2018 /PRNewswire/ — Diversified manufacturer Leggett & Platt (NYSE: LEG) today announced that it has entered into a definitive agreement to acquire Elite Comfort Solutions, Inc. (ECS) for $1.25 billion in cash. The transaction has been approved by the Board of Directors of Leggett & Platt and is expected to close in January 2019, subject to customary closing conditions and regulatory approvals. ECS, a portfolio company of Arsenal Capital Partners (Arsenal), is a leader in proprietary specialized foam technology primarily for the bedding and furniture industries. ECS’s annual sales for the fiscal year ended September 30, 2018 were $611 million. With 16 facilities across the United States, ECS operates a vertically integrated model, producing specialty foam, developing many of the chemicals and additives used in foam production, and manufacturing private-label finished products. These innovative specialty foam products include finished mattresses sold through both traditional and online channels, mattress components, mattress toppers and pillows, and furniture foams. ECS is expected to generate double-digit sales growth and strong EBITDA margins that should be accretive to company average margins. Due to impacts from purchase accounting, ECS is expected to have a slightly negative effect on consolidated EBIT margins. For modeling purposes, in 2019, Leggett anticipates net interest expense of approximately $90 million, fully diluted shares of 136 million, and an approximate 23% tax rate. Including these factors, the acquisition is expected to be neutral to EPS in 2019 and accretive to EPS beginning in 2020. CEO and Arsenal Comments Karl G. Glassman, President and Chief Executive Officer of Leggett & Platt, said, “Through the combination of Leggett & Platt and Elite Comfort Solutions, we will become the leading provider of differentiated products for the bedding industry and gain critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses. ECS is uniquely qualified to provide e-commerce, retail and OEM customers the most advanced technology solutions in specialty foams today. With our best-in-class manufacturing capabilities and ECS’s proprietary and patented technology, we plan to capitalize on current and future trends in the market. Those trends include growth of the online mattress channel, the emergence of boxed bed brands, and those brands’ and traditional mattress manufacturers’ increasing use of hybrid and specialty grade foam technology in compressed and conventional mattresses. We look forward to benefiting from ECS’s technical expertise and working together to implement manufacturing best practices across the acquired operations. We welcome the talented team of ECS to Leggett & Platt and are excited to work closely together to better serve our customers, drive growth and deliver strong value creation for our shareholders.” “Joining forces with Leggett & Platt enables us to provide a wider range of products and services to both companies’ valued customers,” said Chris Chrisafides, Chief Executive Officer of Elite Comfort Solutions. “We admire Leggett & Platt’s storied history, as well as its global footprint and leading product portfolio. I look forward to working closely with Karl, Perry Davis, and the entire Leggett & Platt team as we work towards a seamless integration of our two companies.” John Televantos, a Partner at Arsenal, added “We have built ECS together with our management team to be the innovator in the polyurethane foam and bedding markets. We are delighted to see a great permanent home for ECS and its employees. Leggett & Platt is uniquely capable of continuing and strengthening the path we set for ECS, and we expect that the long history and great value they bring to the bedding industry will be enhanced with this acquisition.” Transaction Financing Leggett & Platt plans to fund the acquisition through the expansion of its commercial paper program and related revolving credit agreement. In addition, Leggett plans to enter into a $500 million 5-year term loan with its current bank group. After the transaction closes, Leggett & Platt will evaluate financing alternatives for the reduction of outstanding commercial paper, which may include issuance of notes in the debt capital markets. The company is committed to maintaining a strong, investment grade profile and expects to quickly deleverage (to a target level ratio of debt to trailing 12-months EBITDA of approximately 2.5x) by suspending share repurchases, reducing other acquisition spending, and using part of the combined company’s operating cash flow to repay debt. With all of these factors considered, Leggett & Platt is modestly changing its dividend payout target to approximately 50% of earnings (from 50-60% of earnings previously). The company strongly maintains its commitment to long-term dividend growth and expects to extend its 47-year dividend growth track record. Compelling Strategic and Financial Rationale Management Following the closing of the transaction, ECS will become a separate business unit and operate within the Residential Products segment. The ECS management team will continue to lead the business. Leggett & Platt has a history of successfully acquiring and integrating companies and looks forward to welcoming ECS’s team members to the Leggett & Platt family. Leggett & Platt plans to maintain all 16 of ECS’s manufacturing and warehousing facilities. https://www.prnewswire.com/news-releases/leggett–platt-to-acquire-elite-comfort-solutions-for-1-25-billion-300745199.htmlLeggett & Platt To Acquire Elite Comfort Solutions For $1.25 Billion
November 7, 2018
Leggett to Acquire Elite Comfort Solutions
– Combined company will be leading provider of differentiated products for the bedding industry – Significantly expands presence in growing specialty foam and hybrid boxed bed market segment – Opportunity to leverage Elite Comfort Solutions’ substantial and proprietary R&D capabilities and technologies – ECS Fiscal Year 2018 sales of $611 million; EBITDA margins accretive to company average – Expect to finance with expanded commercial paper program and $500 million 5-year term loan – Leggett & Platt reiterates commitment to dividend track record and financial strength – Conference call scheduled for November 7th at 8:30 a.m. Eastern (7:30 a.m. Central) 06:30 ET CARTHAGE, Mo., Nov. 7, 2018 /PRNewswire/ — Diversified manufacturer Leggett & Platt (NYSE: LEG) today announced that it has entered into a definitive agreement to acquire Elite Comfort Solutions, Inc. (ECS) for $1.25 billion in cash. The transaction has been approved by the Board of Directors of Leggett & Platt and is expected to close in January 2019, subject to customary closing conditions and regulatory approvals. ECS, a portfolio company of Arsenal Capital Partners (Arsenal), is a leader in proprietary specialized foam technology primarily for the bedding and furniture industries. ECS’s annual sales for the fiscal year ended September 30, 2018 were $611 million. With 16 facilities across the United States, ECS operates a vertically integrated model, producing specialty foam, developing many of the chemicals and additives used in foam production, and manufacturing private-label finished products. These innovative specialty foam products include finished mattresses sold through both traditional and online channels, mattress components, mattress toppers and pillows, and furniture foams. ECS is expected to generate double-digit sales growth and strong EBITDA margins that should be accretive to company average margins. Due to impacts from purchase accounting, ECS is expected to have a slightly negative effect on consolidated EBIT margins. For modeling purposes, in 2019, Leggett anticipates net interest expense of approximately $90 million, fully diluted shares of 136 million, and an approximate 23% tax rate. Including these factors, the acquisition is expected to be neutral to EPS in 2019 and accretive to EPS beginning in 2020. CEO and Arsenal Comments Karl G. Glassman, President and Chief Executive Officer of Leggett & Platt, said, “Through the combination of Leggett & Platt and Elite Comfort Solutions, we will become the leading provider of differentiated products for the bedding industry and gain critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses. ECS is uniquely qualified to provide e-commerce, retail and OEM customers the most advanced technology solutions in specialty foams today. With our best-in-class manufacturing capabilities and ECS’s proprietary and patented technology, we plan to capitalize on current and future trends in the market. Those trends include growth of the online mattress channel, the emergence of boxed bed brands, and those brands’ and traditional mattress manufacturers’ increasing use of hybrid and specialty grade foam technology in compressed and conventional mattresses. We look forward to benefiting from ECS’s technical expertise and working together to implement manufacturing best practices across the acquired operations. We welcome the talented team of ECS to Leggett & Platt and are excited to work closely together to better serve our customers, drive growth and deliver strong value creation for our shareholders.” “Joining forces with Leggett & Platt enables us to provide a wider range of products and services to both companies’ valued customers,” said Chris Chrisafides, Chief Executive Officer of Elite Comfort Solutions. “We admire Leggett & Platt’s storied history, as well as its global footprint and leading product portfolio. I look forward to working closely with Karl, Perry Davis, and the entire Leggett & Platt team as we work towards a seamless integration of our two companies.” John Televantos, a Partner at Arsenal, added “We have built ECS together with our management team to be the innovator in the polyurethane foam and bedding markets. We are delighted to see a great permanent home for ECS and its employees. Leggett & Platt is uniquely capable of continuing and strengthening the path we set for ECS, and we expect that the long history and great value they bring to the bedding industry will be enhanced with this acquisition.” Transaction Financing Leggett & Platt plans to fund the acquisition through the expansion of its commercial paper program and related revolving credit agreement. In addition, Leggett plans to enter into a $500 million 5-year term loan with its current bank group. After the transaction closes, Leggett & Platt will evaluate financing alternatives for the reduction of outstanding commercial paper, which may include issuance of notes in the debt capital markets. The company is committed to maintaining a strong, investment grade profile and expects to quickly deleverage (to a target level ratio of debt to trailing 12-months EBITDA of approximately 2.5x) by suspending share repurchases, reducing other acquisition spending, and using part of the combined company’s operating cash flow to repay debt. With all of these factors considered, Leggett & Platt is modestly changing its dividend payout target to approximately 50% of earnings (from 50-60% of earnings previously). The company strongly maintains its commitment to long-term dividend growth and expects to extend its 47-year dividend growth track record. Compelling Strategic and Financial Rationale Management Following the closing of the transaction, ECS will become a separate business unit and operate within the Residential Products segment. The ECS management team will continue to lead the business. Leggett & Platt has a history of successfully acquiring and integrating companies and looks forward to welcoming ECS’s team members to the Leggett & Platt family. Leggett & Platt plans to maintain all 16 of ECS’s manufacturing and warehousing facilities. https://www.prnewswire.com/news-releases/leggett–platt-to-acquire-elite-comfort-solutions-for-1-25-billion-300745199.htmlLeggett & Platt To Acquire Elite Comfort Solutions For $1.25 Billion
November 1, 2018
Tosoh First Half Results
Tosoh : Reports on First-Half Consolidated Results for Fiscal 2019
Tokyo, Japan-Tosoh Corporation is pleased to announce its consolidated results for the first half of fiscal 2019, from April 1, 2018, to September 30, 2018.
The company’s consolidated net sales amounted to ¥424.5 billion (US$3.8 billion), up ¥32.8 billion, or 8.4%, from the same period a year earlier. The increase was attributable to higher sales prices driven by an increase in the price of naphtha and by rising overseas product markets, and to progress in the Engineering Group’s plant projects in the electronic industry.
Operating income also increased ¥1.5 billion, or 2.8%, over the same period the preceding year, to ¥56.0 billion (US$509.1 million). Although trade conditions worsened because of increased raw material and fuel prices, the increased earnings recorded by the Specialty and Engineering groups helped to drive the increase in operating income.
Ordinary income climbed ¥2.4 billion, or 4.3%, compared with the first half of fiscal 2018, to ¥60.7 billion (US$552.2 million). This rise was due to foreign exchange gains. Profit attributable to owners of the parent company totaled ¥41.7 billion (US$378.8 million), an increase of ¥1.4 billion, or 3.4%, over the same term the previous year.
Results by Business Segment
Petrochemical Group
Petrochemical Group net sales rose ¥5.0 billion, or 5.6%, to ¥93.9 billion (US$853.8 million), compared with the first half of fiscal 2018. The group’s operating income decreased ¥2.3 billion, or 22.2%, to ¥8.0 billion (US$72.6 million).
Shipments of olefin products, such as ethylene and propylene, decreased in line with a decrease in production volume due to fiscal 2019 being a scheduled maintenance year. The group, however, increased sales prices of its olefin products to reflect increased naphtha costs.
Shipments of polyethylene resin in Japan decreased, but the group again increased product prices to reflect the increase in naphtha costs. Chloroprene rubber shipments likewise decreased because of a decline in production volume, but export prices rose, driven by strong overseas demand.
Chlor-alkali Group
The Chlor-alkali Group’s net sales increased ¥12.7 billion, or 8.1%, to ¥168.7 billion (US$1.5 billion). Its operating income likewise rose, ¥157 million, or 0.6%, to ¥25.1 billion (US$227.8 million), compared with the corresponding period the preceding year.
Domestic and international shipments of caustic soda were strong. Additionally, prices were revised upward due to domestic caustic soda price adjustments. Vinyl chloride monomer shipments increased. Prices also increased, driven by improvements in overseas markets. Polyvinyl chloride resin shipments declined on account of decreased production volume, but domestic price adjustments and improved conditions in overseas markets likewise resulted in an increase in product prices.
Domestic shipments of cement were strong. Cement exports, however, decreased.
Shipments of methylene diphenyl diisocyanate (MDI) fell. But MDI export prices rose to reflect the improvement in overseas market conditions.
https://www.marketscreener.com/TOSOH-CORPORATION-6491225/news/Tosoh-Reports-on-First-Half-Consolidated-Results-for-Fiscal-2019-27523298/
November 1, 2018
Tosoh First Half Results
Tosoh : Reports on First-Half Consolidated Results for Fiscal 2019
Tokyo, Japan-Tosoh Corporation is pleased to announce its consolidated results for the first half of fiscal 2019, from April 1, 2018, to September 30, 2018.
The company’s consolidated net sales amounted to ¥424.5 billion (US$3.8 billion), up ¥32.8 billion, or 8.4%, from the same period a year earlier. The increase was attributable to higher sales prices driven by an increase in the price of naphtha and by rising overseas product markets, and to progress in the Engineering Group’s plant projects in the electronic industry.
Operating income also increased ¥1.5 billion, or 2.8%, over the same period the preceding year, to ¥56.0 billion (US$509.1 million). Although trade conditions worsened because of increased raw material and fuel prices, the increased earnings recorded by the Specialty and Engineering groups helped to drive the increase in operating income.
Ordinary income climbed ¥2.4 billion, or 4.3%, compared with the first half of fiscal 2018, to ¥60.7 billion (US$552.2 million). This rise was due to foreign exchange gains. Profit attributable to owners of the parent company totaled ¥41.7 billion (US$378.8 million), an increase of ¥1.4 billion, or 3.4%, over the same term the previous year.
Results by Business Segment
Petrochemical Group
Petrochemical Group net sales rose ¥5.0 billion, or 5.6%, to ¥93.9 billion (US$853.8 million), compared with the first half of fiscal 2018. The group’s operating income decreased ¥2.3 billion, or 22.2%, to ¥8.0 billion (US$72.6 million).
Shipments of olefin products, such as ethylene and propylene, decreased in line with a decrease in production volume due to fiscal 2019 being a scheduled maintenance year. The group, however, increased sales prices of its olefin products to reflect increased naphtha costs.
Shipments of polyethylene resin in Japan decreased, but the group again increased product prices to reflect the increase in naphtha costs. Chloroprene rubber shipments likewise decreased because of a decline in production volume, but export prices rose, driven by strong overseas demand.
Chlor-alkali Group
The Chlor-alkali Group’s net sales increased ¥12.7 billion, or 8.1%, to ¥168.7 billion (US$1.5 billion). Its operating income likewise rose, ¥157 million, or 0.6%, to ¥25.1 billion (US$227.8 million), compared with the corresponding period the preceding year.
Domestic and international shipments of caustic soda were strong. Additionally, prices were revised upward due to domestic caustic soda price adjustments. Vinyl chloride monomer shipments increased. Prices also increased, driven by improvements in overseas markets. Polyvinyl chloride resin shipments declined on account of decreased production volume, but domestic price adjustments and improved conditions in overseas markets likewise resulted in an increase in product prices.
Domestic shipments of cement were strong. Cement exports, however, decreased.
Shipments of methylene diphenyl diisocyanate (MDI) fell. But MDI export prices rose to reflect the improvement in overseas market conditions.
https://www.marketscreener.com/TOSOH-CORPORATION-6491225/news/Tosoh-Reports-on-First-Half-Consolidated-Results-for-Fiscal-2019-27523298/
November 1, 2018
Covestro Aniline Investment
Covestro investeert 300 miljoen euro in Antwerpse haven
“The German chemical company Covestro is building a new factory in the port of Antwerp for the production of aniline, a building block for insulation materials.
The start-up of the factory is scheduled for 2022. How many additional jobs the investment yields is still unclear. For the Antwerp chemicals cluster, it is the third major announcement in a few weeks. This month, Borealis announced that it would allocate 1 billion euros for the construction of a new propylene plant. Nippon Shokubai opened a new production line for superabsorbent polymers (diaper filling) that same day.
Covestro is now investing in an expansion of aniline production. This is a building block for MDI, which in turn is a basic raw material for polyurethane foam. This foam, for example, finds its way into insulation materials for buildings and for refrigerators. Last year, MDI was still in the spotlight because a shortage of the goods caused huge price spikes and delays at many construction sites. Recticel, which processes polyurethane in insulation and mattresses, also saw its profit margin collapse.
Crucial role
Covestro is known as the inventor of polyurethane and has been number one in that market for 80 years. ‘Antwerp plays a crucial role in Covestro’s production network’, according to a press release. At the same time, Covestro is also expanding its MDI plant in Spain, while expansion plans are also on the table in the US and China. These investments are necessary to keep up with market growth. ‘The MDI market will grow by 5 percent per year in the long term’, it sounds.
Covestro was created in 2015 when Bayer split off its chemical division. The company has a market value of more than 10 billion euros and has a thousand employees in Belgium.
World Cup football
In Antwerp, Covestro also produces polycarbonate grains. This is a plastic that can withstand high temperatures and has applications in cars (panoramic roofs, headlamps), smartphones (window for flashlight function), and dialysis filters. In Tielt the company makes polycarbonate sheets for traktor windows, carports and cockpit aircraft.
Covestro also developed the football for the past World Cup in Russia with Adidas. The layer of polyurethane provides, among other things, the necessary elasticity so that the ball quickly takes back its perfect round shape in a staircase.”
Het Duitse chemiebedrijf Covestro bouwt in de Antwerpse haven een nieuwe fabriek voor de productie van aniline, een bouwsteen voor isolatiematerialen.
De opstart van de fabriek is voorzien voor 2022. Hoeveel extra jobs de investering oplevert, is nog onduidelijk. Voor de Antwerpse chemiecluster is het de derde grote aankondiging in enkele weken tijd. Deze maand kondigde Borealis nog aan 1 miljard euro uit te trekken voor de bouw van een nieuwe propyleenfabriek. Nippon Shokubai opende diezelfde dag een nieuwe productielijn voor superabsorberende polymeren (luiervulling).
Covestro investeert nu in een uitbreiding van de anilineproductie. Dat is een bouwsteen voor MDI, dat op zijn beurt een basisgrondstof is polyurethaanschuim. Dat schuim vindt bijvoorbeeld zijn weg naar isolatiematerialen voor gebouwen en voor koelkasten. MDI stond vorig jaar nog in de schijnwerpers doordat een tekort aan het goedje voor enorme prijspieken en vertraging op vele bouwwerven zorgde. Ook Recticel, dat polyurethaan verwerkt in isolatie en matrassen, zag zijn winstmarge daardoor inzakken.
Cruciale rol
Covestro staat te boek als de uitvinder van polyurethaan en is al 80 jaar nummer één in die markt. ‘Antwerpen speelt een cruciale rol in het productienetwerk van Covestro’, klinkt het in een persbericht. Tegelijkertijd breidt Covestro ook zijn MDI-fabriek in Spanje uit, terwijl ook in de VS en China expansieplannen op tafel liggen. Die investeringen zijn nodig om de marktgroei bij te benen. ‘De MDI-markt zal op lange termijn met 5 procent per jaar groeien’, klinkt het.
Covestro ontstond in 2015 toen Bayer zijn chemiedivisie afsplitste. Het bedrijf heeft een beurswaarde van ruim 10 miljard euro en telt in België een duizendtal werknemers.
WK voetbal
In Antwerpen produceert Covestro ook polycarbonaatkorrels. Dat is een kunststof die bestand is tegen hoge temperaturen en toepassingen heeft in auto’s (panoramische daken, koplamper), smartphones (venster voor zaklampfunctie), en dialysefilters. In Tielt maakt het bedrijf polycarbonaatplaten voor traktorramen, carports en cockpits vliegtuigen.
Covestro ontwikkelde tevens met Adidas de voetbal voor het voorbije WK voetbal in Rusland. Het laagje polyurethaan zorgt onder andere voor de nodige elasticiteit waardoor de bal bij een trap snel terug zijn perfect ronde vorm aanneemt.
https://www.tijd.be/ondernemen/chemie/covestro-investeert-300-miljoen-euro-in-antwerpse-haven/10063480.html
Everchem Updates Archive 
Sign Up for Email Updates