Eastman Chemical (EMN) And Clariant Ink Agrochemical Deal

Eastman Chemical Company (NYSE:EMN) has inked an exclusive cooperation agreement with Clariant, a global leader in specialty chemicals. The deal will enable the distribution of Eastman Chemical’s Tamisolve NxG solvent, which is a low-tox and highly effective solvent for the agrochemical industry.

TamiSolve NxG is used in the global plant protection sector including biological control agents, plant growth regulators, fungicides, herbicides and insecticides. Through this exclusive deal, Clariant will globally sell and market TamiSolve NxG under its trade name — Genagen NBP. Genagen NBP is a powerful, water miscible solvent with excellent toxicity labeling for agrochemical formulations.

Notably, the plant protection market is governed by rigid regulations. Eastman Chemical’s latest collaboration with Clariant highlights the parties’ commitment to the industry. By combining the resources and expertise, they aim to put Genagen NBP to the forefront of the agrochemical field. Clariant will bring formulation expertise and market access to support agrochemicals industry and Eastman Chemical will deliver an innovative solution for effective, low-toxicity ingredient.

With the collaboration, Eastman Chemical and Clariant will utilize their individual strengths to introduce more efficient, sustainable and innovative solutions for farmers across the globe. Moreover, the deal is expected to deliver significant business benefits to agrochemical formulators and customers.

Shares of Eastman Chemical have lost 22.1% in the past year compared with the industry’s 24.7% decline.

In October, the company stated that strong volume gains in the specialty businesses, disciplined cost management and lower effective tax rate have helped it achieve year-over-year adjusted earnings per share (EPS) growth of 13% during the first nine months of 2018. Eastman Chemical continues to expect year-over-year adjusted EPS growth of 10-14% for 2018. It also expects to generate roughly $1.1 billion of free cash flow in 2018.

Zacks Rank & Other Stocks to Consider

Eastman Chemical currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (NYSE:CF) , Nexeo Solutions, Inc. (NASDAQ:NXEO) and The Mosaic Company (NYSE:MOS) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained 2.3% in the past year.

Nexeo Solutions has an expected long-term earnings growth rate of 30.6%. Its shares have moved up 6.6% in a year’s time.

Mosaic has an expected long-term earnings growth rate of 7%. The company’s shares have surged 24.1% in the past year.

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