The Zacks Analyst Blog Highlights: FMC, Bank of America, Cytec Industries, PPG Industries and Potash Corporation of Saskatchewan

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Jul 26, 2013, 10:02 ET

CHICAGO, July 26, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include FMC Corporation (NYSE:FMC-Free Report), Bank of America Corporation (NYSE:BAC-Free Report), Cytec Industries Inc. (NYSE:CYT-Free Report), PPG Industries Inc. (NYSE:PPG-Free Report) and Potash Corporation of Saskatchewan Inc. (NYSE:POT-Free Report).

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Here are highlights from Thursday's Analyst Blog:

FMC Buys Epax for $345M

Chemical company FMC Corporation (NYSE:FMC-Free Report) has acquired all the shares of Omega-3 fatty acid maker Epax to bolster its nutrition and health division and expand in the high-growth nutraceutical market.

FMC Corp.'s buyout includes Epax's two production facilities - Epax Nutra Holding III AS in Alesund, Norway, and Epax UK Holding III AS in Seal Sands, U.K. The deal is valued at roughly $345 million and is expected to be immediately accretive to the company's earnings.

Epax, which was part of Trygg Pharma Group AS, produces high purity, premium grade Omega-3 EPA/DHA fatty acids that are mainly used in nutraceuticals, active pharmaceutical ingredient (API) and food markets. Epax uses proprietary purification and concentration production techniques to cater to the nutraceuticals market.

As part of the transaction, FMC Corp. has also entered into a long-term supply agreement with Trygg Pharma to provide it with high-concentration Omega-3 fish oil for use as an active pharmaceutical ingredient.

Bank of America Merrill Lynch, the corporate and investment banking division of Bank of America Corporation (NYSE:BAC-Free Report), acted as the sole financial advisor to FMC Corp. for this transaction.

The Omega-3 fatty acids market is expected to grow 12 % to 15 % annually and holds a market supply of $2.1 billion per year. Strong demand for Omega-3 fatty acid concentrated products developed among buyers due to the increased awareness about the benefits Omega-3 has on cardiovascular and brain among others.

The acquisition is a strategic move by FMC Corp. to strengthen its position in the functional ingredients for the food, nutraceutical and pharmaceutical markets. This buyout is also a step forward for FMC Corp. to accomplish its Vision 2015 growth goals through targeted acquisitions that complement its technology, business and financial priorities.

Following the announcement, shares of FMC Corp. rose 0.9% to close at $63.55 on Jul 24.

FMC Corp., which currently carries a Zacks Rank #3 (Hold), will release its second-quarter 2013 results after the market closes on Jul 29.

Other companies in the chemical industry having favorable Zacks Rank are Cytec Industries Inc. (NYSE:CYT-Free Report) and PPG Industries Inc. (NYSE:PPG-Free Report). Both of them carry a Zacks Rank #2 (Buy).

Potash to Buy Back $2M Shares

Potash Corporation of Saskatchewan Inc. (NYSE:POT-Free Report) has announced that is will be commencing a $2 billion share buyback program. The company's Board has approved the buyback program allowing it to repurchase up to 5% of its outstanding common shares over a year.

The share repurchase program will start once it receives regulatory approvals. As per the program the shares can be bought through the facilities of the Toronto Stock Exchange, the New York Stock Exchange or other published markets by means of open market transactions. The purchases may also be made by other means or as permitted by the Toronto Stock Exchange and applicable U.S. securities laws.

The buyers can buy the common shares at the market price at the time of purchase or a price as may be permitted by applicable regulatory requirements. Potash Corp will determine the actual number of common shares that may be repurchased under the program and the timing of any such repurchases.

The move by Potash Corp testifies to its commitment to boost shareholders' value. As part of this, the company, in May 2013, also announced a 25% hike in its quarterly cash dividend from 28 cents per share to 35 cents per share. The dividend will be paid on Aug 2, 2013, to shareholders of record as of Jul 12, 2013.

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