Arkema S.A. ARKAY announced its planned acquisition of Irish manufacturer Arc Building Products. The buyout will strengthen its position in Ireland's growing construction adhesives market, which will provide a broader range of solutions and a local manufacturing footprint. Arc Building Products, which specializes in tile adhesives, floor preparation systems, building chemicals, and sealing and bonding solutions, has established a strong presence in the Irish market by providing first-rate system solutions with a strong emphasis on customer service. It generates approximately €15 million in annual sales and has a manufacturing facility in Arklow, Co. Wicklow, Ireland. Bostik, the adhesive solutions segment of the Arkema Group, is poised to leverage significant industrial and commercial synergies through this planned acquisition, building on its strong position in Ireland for over 60 years. Bostik will expand its portfolio of high-value-added solutions for the growing Irish construction market, which is being driven by rising demand for sustainable housing and renovation. Bostik will also make significant investments in its Arklow facility to increase the local production of its solutions. This project is scheduled to be completed in the first quarter of 2024. Shares of Arkema have gained 20% over the past year against the 9.3% decline of its industry.
Image Source: Zacks Investment Research Thermal Insulation Systems
Arkema currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN. Denison Mines has a projected earnings growth rate of 100% for the current year. It currently sports a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock has gained 61.3% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here. Axalta has a projected earnings growth rate of 5.4% for the current year. It currently sports a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of 6.7%, on average. The stock has gained 24.7% in a year. Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of 27.5%, on average. HWKN shares have gained 67% in a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arkema SA (ARKAY) : Free Stock Analysis Report
Denison Mine Corp (DNN) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
Wide Ph Value Chemicals To read this article on Zacks.com click here.