Air Products and Chemicals, Inc. APD recently filed an initial Form 10 with the United States Securities and Exchange Commission, moving a step ahead with its earlier announced Materials Technologies business spin-off. Post the spin-off, expected to complete on or before Sep 2016, the unit will be named Versum Materials.
Following the spin-off, Air Products and Versum Materials will operate as two best-in-class public companies with separate business models, capital requirements and growth profiles. The Form 10 filing is a key step in providing current shareholders with the opportunity to have ownership in two leading companies.
The spin-off is in sync with Air Products’ strategy and five-point plan. This will enable the company to become the safest and most profitable industrial gas company in the world, offering outstanding services. Also, the spin-off will allow the company to focus entirely on specialty materials.
Guillermo Novo, current executive vice president – Materials Technologies, will become Chief Executive Officer (CEO) of Versum Materials post the spin-off. Seifi Ghasemi will be the non-executive chairman of the new company, while retaining his current roles as chairman, president and CEO of Air Products.
The Materials Technologies division offers specialty gases, specialty chemicals, services and equipment to the electronics industry. It also offers performance chemical solutions for a number of industries including coatings, inks, adhesives, personal care, institutional and industrial cleaning, and mining.
Versum Materials will be a global business delivering specialty solutions focused on niche markets, and offering innovative products with strong growth prospects. The company will employ about 3,200 people and operate in more than 12 countries.
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the diversified chemical space are Akzo Nobel N.V. AKZOY, Celanese Corp. CE and Innospec Inc. IOSP. While Akzo Nobel and Celanese sport a Zacks Rank #1 (Strong Buy), Innospec carries a Zacks Rank #2 (Buy).
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