Epoxy
March 28, 2021
Jim Panetta 1941-2021
It is sad to report the passing of Vincent A. Panetta, one of the original founders of Everchem. Jimmy, as he was known, worked for about ten years with the other two founders, Bob Daniele and David Patten at ARCO Chemical.
Jim was a serial entrepreneur with experiences owning a deli, a restaurant, multiple health clubs, was a stockbroker, and even sold imported vacuum cleaners at local home shows. Think infomercials! I’m sure that’s only half of what he did. Early in his career, he had worked for Atlantic Richfield as a gas station sales rep, working out deals for ARCO franchisees in the Philadelphia area . Eventually, he came back to ARCO Chemical as a chemical sales representative.
Dave joined ARCO Chemical in 1987 as a sales trainee, and Bob joined when ARCO Chemical acquired Union Carbide’s polyol business in 1990 or so. It is tough to say because the FTC created an interim company called the ARCO Chemical West Virginia (ACWV) Company while they decided which assets could stay and which had to be spun off.
At any rate, Jim left ARCO Chemical during a restructuring (ARCO stood for Another Reorginization COming) in the mid 1990s. His last position had been selling side products from the polystyrene business to the secondary market. Things like floor sweeps, or other forms of off-spec polystyrene. We called him the Duke of Dylene, which was the trade name for the ARCO Chemical version of polystyrene. This business was eventually sold to Nova Chemical.
When Jim left ARCO Chemical, he used his knowledge to create his own company, Evercrest, focused on distressed products in both polystyrene and chemicals–products like glycol or glycol ether bottoms. Jim was always trying to get the best out of everyone, and his ultimate vision was scaling Mount Everest. That was how he came up with Evercrest, and he had also protected the name Everchem. He brought in his two sons, Robert and Jamie, and later his daughter Jen, to help with Evercrest.
Jim’s business did well and when Bob and Dave decided to form a urethane distributorship in 2002, Jim invested and helped establish credit lines for the fledgling company. He owned the name Everchem which seemed as good as anything and was chosen. He and his sons gave advice and room and board, to some extent. The first Everchem offices were down the hall from Evercrest in a small strip center in Broomall, PA. Maureen Moke, who worked for Evercrest, was reassigned to Everchem as our first employee. Those offices were $400/month and we had to cover our desks with a plastic tarp when we thought it might rain because the ceiling tiles would get saturated and fall on our computer stations. The first desks were small filing cabinets as a base and cheap kitchen countertops from Home Depot used as the desktop. The computer network was hard wired and taped to the floor so no one would trip. We made it a point to meet visitors at a local restaurant.
Eventually, Jim passed along his plastics business to his sons and after Everchem was firmly established, sold his shares. He continued to be an advisor and friend and until recently he would regularly stop by the Everchem offices for an afternoon espresso and dialogue.
This is just Jim’s business side of life. His gregarious personality and positive outlook inspired so many more people than I could list here. Rest in Peace, my friend Jimmy Panetta!
2004 Philly Half Marathon Finish
March 25, 2021
Suez Canal Blocked
“Might Take Weeks” – Suez Canal Still Closed As “Enormous Beached Whale” Ship Remains Stuck
by Tyler DurdenThursday, Mar 25, 2021 – 06:35 AM
Update (0956ET): Daily Mail’s deputy political editor John Stevens tweets the British government “stands ready” to support operations to free the containership blocking the Suez Canal.
Boris Johnson’s spokesman:
“We are ready to provide any assistance that we can but have not been asked yet.”
* * *
Update (0942 ET): The massive containership blocking the Suez Canal remains stuck in place and unable to refloat on Thursday. Each day the canal is blocked, it halts about $9.6 billion of traffic through the world’s most important shipping lane.
The Suez Canal Authority’s knock-on effects on closing the 120-mile long canal will likely cause shipping traffic jams at both entrances of the canal, delayed shipments, supply chain disruptions, rising prices of certain commodities, and may push up freight rates. https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&frame=false&hideCard=false&hideThread=false&id=1375080625942724608&lang=en&origin=https%3A%2F%2Fwww.zerohedge.com%2Fenergy%2Fmight-take-weeks-suez-canal-still-closed-enormous-beached-whale-ship-remains-stuck&siteScreenName=zerohedge&theme=light&widgetsVersion=e1ffbdb%3A1614796141937&width=550px
* * *
The Suez Canal Authority (SCA) reported Thursday it had suspended traffic along the 120-mile long canal while eight tugboats worked to free a massive containership, according to Reuters.
SCA’s statement said thirteen vessels had sailed south along the canal on Wednesday and were waiting in the canal’s lakes until the containership was refloated. On either side of the canal’s entrances, dozens of ships are piling up as the world’s most crucial shipping lane grinds to a halt.
The container ship called the Ever Given, owned by Evergreen Marine Corp., “could be stuck in the canal for weeks,” according to the firm working to dislodge the vessel.
Peter Berdowski, CEO of Dutch company Boskalis which has been tasked to dislodge Ever Given, was quoted by the Daily Mail as saying:
“We can’t exclude it might take weeks, depending on the situation. It’s an enormous weight on the sand. We might have to work with a combination of reducing the weight by removing containers, oil and water from the ship, tug boats, and dredging of sand.”
Berdowski compared the 1,312ft-long, 175ft-wide, 200,000-ton vessel to an “enormous beached whale” as he suggested offloading cargo might be one solution to refloat the ship.
A source familiar with the matter told Bloomberg that Ever Given is “lodged approximately 5 meters into the canal’s bank, hindering efforts to re-float it fully.”
As many as 50 vessels pass through the canal on a given day, which means upwards of 150 vessels could be waiting to transit the canal. By now, some vessels have opted for alternative routes.
NYMEX WTI crude oil futures are down 2% in the overnight session and don’t seem to care about the canal’s continued shuttering. Perhaps, oil traders are refocusing on virus troubles in Europe, hindering demand.
But as we must note, if the SCA were to release a statement indicating a prolonged shutdown of the canal, crude prices would likely continue to rise. This is because 12% of global trade and 8% of liquefied natgas traverse the canal and nearly one million oil barrels each day.
On top of global supply chains already stretched thin due to the virus pandemic, the world’s most important shipping lane is paralyzed.
March 25, 2021
Suez Canal Blocked
“Might Take Weeks” – Suez Canal Still Closed As “Enormous Beached Whale” Ship Remains Stuck
by Tyler DurdenThursday, Mar 25, 2021 – 06:35 AM
Update (0956ET): Daily Mail’s deputy political editor John Stevens tweets the British government “stands ready” to support operations to free the containership blocking the Suez Canal.
Boris Johnson’s spokesman:
“We are ready to provide any assistance that we can but have not been asked yet.”
* * *
Update (0942 ET): The massive containership blocking the Suez Canal remains stuck in place and unable to refloat on Thursday. Each day the canal is blocked, it halts about $9.6 billion of traffic through the world’s most important shipping lane.
The Suez Canal Authority’s knock-on effects on closing the 120-mile long canal will likely cause shipping traffic jams at both entrances of the canal, delayed shipments, supply chain disruptions, rising prices of certain commodities, and may push up freight rates. https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&frame=false&hideCard=false&hideThread=false&id=1375080625942724608&lang=en&origin=https%3A%2F%2Fwww.zerohedge.com%2Fenergy%2Fmight-take-weeks-suez-canal-still-closed-enormous-beached-whale-ship-remains-stuck&siteScreenName=zerohedge&theme=light&widgetsVersion=e1ffbdb%3A1614796141937&width=550px
* * *
The Suez Canal Authority (SCA) reported Thursday it had suspended traffic along the 120-mile long canal while eight tugboats worked to free a massive containership, according to Reuters.
SCA’s statement said thirteen vessels had sailed south along the canal on Wednesday and were waiting in the canal’s lakes until the containership was refloated. On either side of the canal’s entrances, dozens of ships are piling up as the world’s most crucial shipping lane grinds to a halt.
The container ship called the Ever Given, owned by Evergreen Marine Corp., “could be stuck in the canal for weeks,” according to the firm working to dislodge the vessel.
Peter Berdowski, CEO of Dutch company Boskalis which has been tasked to dislodge Ever Given, was quoted by the Daily Mail as saying:
“We can’t exclude it might take weeks, depending on the situation. It’s an enormous weight on the sand. We might have to work with a combination of reducing the weight by removing containers, oil and water from the ship, tug boats, and dredging of sand.”
Berdowski compared the 1,312ft-long, 175ft-wide, 200,000-ton vessel to an “enormous beached whale” as he suggested offloading cargo might be one solution to refloat the ship.
A source familiar with the matter told Bloomberg that Ever Given is “lodged approximately 5 meters into the canal’s bank, hindering efforts to re-float it fully.”
As many as 50 vessels pass through the canal on a given day, which means upwards of 150 vessels could be waiting to transit the canal. By now, some vessels have opted for alternative routes.
NYMEX WTI crude oil futures are down 2% in the overnight session and don’t seem to care about the canal’s continued shuttering. Perhaps, oil traders are refocusing on virus troubles in Europe, hindering demand.
But as we must note, if the SCA were to release a statement indicating a prolonged shutdown of the canal, crude prices would likely continue to rise. This is because 12% of global trade and 8% of liquefied natgas traverse the canal and nearly one million oil barrels each day.
On top of global supply chains already stretched thin due to the virus pandemic, the world’s most important shipping lane is paralyzed.
March 22, 2021
Rail Merger
Canadian Pacific Buys Kansas City Southern For $25BN In Largest Deal Of 2021
by Tyler DurdenSunday, Mar 21, 2021 – 10:25 AM
Canadian Pacific Railways has agreed to buy Kansas City Southern for $25 billion ($28.9 billion including debt) in the largest takeover deal this year. The transaction which sees CP take over the smallest of the seven Class 1 railway operators that dominate a significant share of freight activity in the US, is the biggest in CP’s history and will create a 20,000-mile rail network including the first U.S.-Mexico-Canada railroad.
As the FT, which first reported the transaction, notes, the deal marks the latest effort to shake up a structure among the big railroads in the US and Canada that has been unchanged since CSX and Norfolk Southern — the two big operators in the eastern US — took over Conrail and divided it between themselves in 1999.
The transaction gives CP access to the Kansas City, Missouri-based company’s sprawling Midwestern rail network that connects farms in Kansas and Missouri to ports along the Gulf of Mexico. It would also give it reach to Mexico, which made up almost half of Kansas City Southern’s revenue last year, and create the only network that cuts through all three North American countries
“This transaction will be transformative for North America,” CP President and Chief Executive Officer Keith Creel said, adding that “this will create the first US-Mexico-Canada railroad . . . [and combine the] two best performing Class 1 railroads for the past three years on a revenue growth basis.”
The Calgary-based company will pay $275 per share – a 23% premium to Friday’s record close – comprised of $90 in cash and the remainder with its stock, receiving 0.489 CP shares for every share they own. To pay for the deal, CP will issue 44.5 million new shares and raise $8.6bn in debt. according to a statement from both companies on Sunday. Shares of Kansas City Southern have more than doubled in the past year. Last September, the company rejected a takeover bid from a Blackstone and Global Infrastructure Partners-led consortium that valued its shares at $21BN.
The two companies notified the Surface Transportation Board, the US freight rail regulator that will need to approve the combination, about the deal on Saturday, people with direct knowledge of the matter said.
Investors have been concerned that any further consolidation would run into problems with the STB. As it stands, there are two competing big operators in Canada (CP and Canadian National), CSX and Norfolk Southern in the eastern US and Union Pacific and BNSF in the west. Kansas City Southern, the smallest Class 1, is the only operator focused on north-south operations.
The FT also notes that Kansas City Southern’s performance has been closely tied to trade between the US, Canada and Mexico, with its main routes linking the two countries neighbouring the US. It also has extensive operations in Mexico and owns a 50% stake in the Panama Canal Railway Company. The railway sector was hit hard in the early phase of the pandemic because of restrictions imposed by the US government to contain the spread of coronavirus.
As a result, Kansas City Southern reported an 8% drop in revenues in 2020 to $2.6bn and a 23% increase in net income to $617m. But prospects have improved in recent months, as the US accelerated its rollout of vaccines and business activity picked up. Biden’s efforts to strengthen US-Mexico trade relations – especially if Mexico agrees to hold the migrants that Biden initially invited – are expected to further boost railway activity. KCS employs about 6,200 staff compared with nearly 12,000 at the Canadian group.
Canadian Pacific shares have climbed 80% over the past year and have a market value of C$63bn ($50bn). The company’s largest shareholder is Chris Hohn’s TCI hedge fund, which had an 8.4% stake, according to filings from the end of last year.
Canadian Pacific previously approached first CSX and then Norfolk Southern about potential mergers in 2014 and 2016 under Hunter Harrison, the chief executive who was installed after a campaign by Bill Ackman, the activist investor. Both bids were rebuffed and there have been no further attempts at mergers since Harrison unexpectedly resigned from CP in January 2017. Harrison joined CSX two months later, shortly before his death in December that year.
Creel will be CEO of the new company, based in Calgary, and is expected to remain at the helm until at least early 2026, according to a separate statement. The combined entity, to be called Canadian Pacific Kansas City, or CPKC, will have revenue of about $8.7 billion and almost 20,000 employees.
https://www.zerohedge.com/markets/canadian-pacific-buys-kansas-city-soutern-25bn-largest-deal-2021
March 22, 2021
Rail Merger
Canadian Pacific Buys Kansas City Southern For $25BN In Largest Deal Of 2021
by Tyler DurdenSunday, Mar 21, 2021 – 10:25 AM
Canadian Pacific Railways has agreed to buy Kansas City Southern for $25 billion ($28.9 billion including debt) in the largest takeover deal this year. The transaction which sees CP take over the smallest of the seven Class 1 railway operators that dominate a significant share of freight activity in the US, is the biggest in CP’s history and will create a 20,000-mile rail network including the first U.S.-Mexico-Canada railroad.
As the FT, which first reported the transaction, notes, the deal marks the latest effort to shake up a structure among the big railroads in the US and Canada that has been unchanged since CSX and Norfolk Southern — the two big operators in the eastern US — took over Conrail and divided it between themselves in 1999.
The transaction gives CP access to the Kansas City, Missouri-based company’s sprawling Midwestern rail network that connects farms in Kansas and Missouri to ports along the Gulf of Mexico. It would also give it reach to Mexico, which made up almost half of Kansas City Southern’s revenue last year, and create the only network that cuts through all three North American countries
“This transaction will be transformative for North America,” CP President and Chief Executive Officer Keith Creel said, adding that “this will create the first US-Mexico-Canada railroad . . . [and combine the] two best performing Class 1 railroads for the past three years on a revenue growth basis.”
The Calgary-based company will pay $275 per share – a 23% premium to Friday’s record close – comprised of $90 in cash and the remainder with its stock, receiving 0.489 CP shares for every share they own. To pay for the deal, CP will issue 44.5 million new shares and raise $8.6bn in debt. according to a statement from both companies on Sunday. Shares of Kansas City Southern have more than doubled in the past year. Last September, the company rejected a takeover bid from a Blackstone and Global Infrastructure Partners-led consortium that valued its shares at $21BN.
The two companies notified the Surface Transportation Board, the US freight rail regulator that will need to approve the combination, about the deal on Saturday, people with direct knowledge of the matter said.
Investors have been concerned that any further consolidation would run into problems with the STB. As it stands, there are two competing big operators in Canada (CP and Canadian National), CSX and Norfolk Southern in the eastern US and Union Pacific and BNSF in the west. Kansas City Southern, the smallest Class 1, is the only operator focused on north-south operations.
The FT also notes that Kansas City Southern’s performance has been closely tied to trade between the US, Canada and Mexico, with its main routes linking the two countries neighbouring the US. It also has extensive operations in Mexico and owns a 50% stake in the Panama Canal Railway Company. The railway sector was hit hard in the early phase of the pandemic because of restrictions imposed by the US government to contain the spread of coronavirus.
As a result, Kansas City Southern reported an 8% drop in revenues in 2020 to $2.6bn and a 23% increase in net income to $617m. But prospects have improved in recent months, as the US accelerated its rollout of vaccines and business activity picked up. Biden’s efforts to strengthen US-Mexico trade relations – especially if Mexico agrees to hold the migrants that Biden initially invited – are expected to further boost railway activity. KCS employs about 6,200 staff compared with nearly 12,000 at the Canadian group.
Canadian Pacific shares have climbed 80% over the past year and have a market value of C$63bn ($50bn). The company’s largest shareholder is Chris Hohn’s TCI hedge fund, which had an 8.4% stake, according to filings from the end of last year.
Canadian Pacific previously approached first CSX and then Norfolk Southern about potential mergers in 2014 and 2016 under Hunter Harrison, the chief executive who was installed after a campaign by Bill Ackman, the activist investor. Both bids were rebuffed and there have been no further attempts at mergers since Harrison unexpectedly resigned from CP in January 2017. Harrison joined CSX two months later, shortly before his death in December that year.
Creel will be CEO of the new company, based in Calgary, and is expected to remain at the helm until at least early 2026, according to a separate statement. The combined entity, to be called Canadian Pacific Kansas City, or CPKC, will have revenue of about $8.7 billion and almost 20,000 employees.
https://www.zerohedge.com/markets/canadian-pacific-buys-kansas-city-soutern-25bn-largest-deal-2021
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