Shaun Currie, CFA
Long/short equity, hedge fund analyst, momentum

2014 Ira Sohn Contest Finalist: Long Chemtura Corp

2014 Ira Sohn Contest Finalist: Long Chemtura Corp

Executive Summary

  1. Over the past several years, the management team at Chemtura has done a great job of divesting non-core assets, improving its balance sheet, cutting costs, and streamlining its business to become a pure-play on industrial specialty chemicals. Yet, these actions seem to have gone unnoticed as the company still trades at a significant discount to its peers.
  2. The recent announcement of the sale of its AgroSolutions business will allow the company to both pay off debt, resulting in annual interest expense savings of $13.6MM, and initiate a stock repurchase tender offer for approximately one-third of the outstanding shares. We expect this tender offer to be completed at a 20-34% premium
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