Wired News – Stepan Co. Completed Previously Announced Acquisition of BASF’s Mexican Surfactant Business

Stock Monitor: Orchids Paper Products Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 29, 2018 / Active-Investors.com has just released a free research report on Stepan Co. (NYSE: SCL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SCL as the Company’s latest news hit the wire. On March 27, 2018, the Company disclosed that its Mexican subsidiary Stepan CDMX, S. de R.L. de C.V. had completed the acquisition of a portion of BASF’s oleochemical surfactants business in Mexico from BASF Mexicana, S.A. de C.V. The Company had announced the acquisition of BASF’s Mexican surfactant business in June 2017. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Orchids Paper Products Company (NYSE AMER: TIS), which also belongs to the Consumer Goods sector as the Company Stepan. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Stepan most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Quotes from Management

Commenting on the completion of the deal, F. Quinn Stepan Jr., Chairman, President and CEO of Stepan Co., said:

“This acquisition supports the Company’s growth strategy in Latin America. We believe this acquisition significantly enhances Stepan’s market position and supply capabilities for surfactants in Mexico and positions us to grow in both the Consumer and Functional markets for surfactants.”

Scott Thomson, Senior Vice President of BASF Care Chemicals – North America, added:

“We thank our Ecatepec employees for their contributions and wish them future success as part of the Stepan team. Moving forward, we will help customers in Mexico by continuing to provide home care, personal care, agricultural and industrial solutions, including optical effects, specialty co-surfactants, actives, emulsifiers and polymers.”

The Mexican surfactant business of BASF

The Mexican surfactant business acquired from BASF was part of BASF´s Care Chemicals division. Oleochemical surfactants are basically used in the manufacture of soaps and detergents as well as a range of home care and personal care products. The deal includes a portion of BASF’s associated surfactants business including related intellectual property as well as the surfactant production facility in Ecatepec, Mexico. The surfactant production facility has a production capacity of 50,000 metric tons, a warehouse space of over 124,000 sq. ft., a large laboratory, an office space and is located near Mexico City. Stepan will also absorb most of the existing employees at this production facility on completion of the deal.

The deal is expected to be marginally accretive to the Company’s earnings in FY18.

Rationale

BASF had decided to divest this asset so that its Care Chemicals business can focus on its core businesses in Mexico including home care, personal care, and industrial solutions portfolio, including optical effects, specialty co-surfactants, actives, emulsifiers and polymers. BASF’s has clarified that its existing oleochemical surfactants business in the US, Europe, and Asia would not be impacted by this divestiture.

The acquisition is part of Stepan’s strategy of growing its business in Latin America and enhancing its market presence in surfactants business in Mexico. The acquisition will allow the Company to expand its presence in the Consumer and Functional markets for surfactants in the Latin American country.

About Stepan Co.

Northfield, Illinois-based Stepan was founded in 1932 by Alfred C. Stepan Jr. It is a leading manufacturer of specialty and intermediate chemicals, including surfactants, specialty products, germicidal and fabric softening quaternaries, phthalic anhydride (P.A.), polyurethane polyols and special ingredients for the food, supplement, and pharmaceutical markets. The surfactants produced by the Company is a key ingredient in consumer and industrial cleaning compounds and in agricultural and oilfield solutions while the polyurethane polyols are manufactured by the Company are used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries. The Company has 18 manufacturing plants located in 11 countries throughout North and South America, Europe, and Asia.

About BASF, BASF Mexico, and BASF´s Care Chemicals division

BASF is a German multinational chemical Company and the world’s largest chemical producer by chemical sales. The Company’s business is divided into five major segments – Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions, and Oil & Gas. The group’s sales was approximately €64.5 billion for FY17.

The BASF Care Chemicals division produces a wide range of ingredients for personal care, hygiene, home care, industrial and institutional cleaning, agricultural and technical applications. It is a leading global supplier to the cosmetics, detergents, and cleaners’ industry. Its products portfolio includes surfactants, emulsifiers, polymers, emollients, chelating agents, cosmetic active ingredients, and UV filters.

BASF Mexico is based in Mexico City and covers the markets in Central America and the Caribbean. The business unit has more than 2,500 employees and 12 production sites in this region.

Stock Performance Snapshot

March 28, 2018 – At Wednesday’s closing bell, Stepan’s stock was marginally up 0.90%, ending the trading session at $82.88.

Volume traded for the day: 74.01 thousand shares.

Stock performance in the last month – up 2.88%; previous three-month period – up 4.78%; past twelve-month period – up 5.45%; and year-to-date – up 4.95%

After yesterday’s close, Stepan’s market cap was at $1.91 billion.

Price to Earnings (P/E) ratio was at 18.20.

The stock has a dividend yield of 1.09%.

The stock is part of the Consumer Goods sector, categorized under the Cleaning Products industry. This sector was up 0.6% at the end of the session.

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