NEW YORK, July 14, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Platform Specialty Products Corp (NYSE:PAH). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=PAH
Highlights from our PAH Report include:
- Proposed Acquisition Deal - On July 13, 2015, Platform Specialty Products Corporation reported that as a part of its core growth strategies, it has offered to acquire all of the issued and outstanding shares of Alent Plc in a cash and stock deal for approximately $2.1 billion. The Company informed that including net debt, the total transaction value is approximately $2.3 billion. Platform Specialty shares ended Monday's session at $25.53, reflecting a gain of 5.8% over the past two trading sessions.
- Transaction Valuation - Under the terms of the proposed transaction, Platform Specialty has offered to pay 503 pence in cash to Alent shareholders for each Alent share. The transaction values Alent's entire issued and to be issued share capital at $2,096 million. As per the release, this valuation represents a premium of approximately 49% over Alent's closing price of 337.7 pence per share as of July 10, 2015, approximately 37% over the three month volume weighted average share price of 368.2 pence, and approximately 24% over the 52-week high share price of 406.2 pence on March 12, 2015.
- Financial & Operational Synergies - With a highly attractive business model and a proven financial track record, Alent reflects compelling growth prospects. Platform Specialty believes that the acquisition Alent would allow the Company to combine complementary product portfolios and geographical footprints. Additionally, the transaction would assist the Company in expanding its product offering while providing an opportunity to unlock substantial value through the realization of material costs synergies and sales growth opportunities. The Company anticipates that the combined venture will achieve annual pre-tax cost synergies of $50 million, likely to be phased in over the three years after the completion of the transaction.
- Management Opinion - Martin E. Franklin, Platform Specialty's Founder and Chairman, said, "The proposed acquisition of Alent marks a further step in the Platform strategy of building a portfolio of best-in-class 'Asset-Lite, High-Touch' businesses in the specialty chemicals industry. This business and acquisition fits well within our stated objectives, and we are compelled by the value creation the combination may generate."
- Timeframe for Closure of the Deal - As per the release, the transaction is expected to close in late 2015 or early 2016. Credit Suisse is acting as financial adviser to Platform Specialty, while Slaughter and May are acting as lead U.K. legal adviser and Paul, Weiss, Rifkind, Wharton & Garrison LLP acting as U.S. legal adviser, for the transaction.
To find out how this influences our rating on Platform Specialty Products Corp., read the full report in its entirely here: http://www.aciassociation.com/?c=PAH
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