- Albemarle (NYSE:ALB) agrees to sell its Fine Chemistry Services business to W.R. Grace (NYSE:GRA) for $570M in cash and preferred stock.
- The deal includes Albemarle's operations in Tyrone, Pa., and South Haven, Mich.
- Grace says the deal will strengthen and expand its existing pharma portfolio, which is the largest, fastest growing and most profitable subsegment within Grace's Materials Technologies business.
- Grace expects the acquisition will add ~$60M in full-year run-rate EBITDA in 2021, with EBITDA margins of more than 35%.
- "Albemarle looks highly overvalued based on 2020 and projected 2021 results," Gary Gambino writes in a neutral analysis published recently on Seeking Alpha.