PAH
Platform Specialty Products Corporation
Industrial/Transportation
02/23/2015
Presented
| Date | 02/18/2015 |
| Price | $24.39 |
| Market Cap | $4.69B |
| Ent Value | $5.25B |
| P/E Ratio | N/A |
| Book Value | $10.79 |
| Div Yield | N/A |
| Shares O/S | 192.13M |
| Ave Daily Vol | 830,000 |
| Short Int | 2.14% |
Current
| Price | $9.05 |
| Market Cap | $2.32B |
| Platform Specialty Products Corporation develops, produces, and markets a range of specialty chemical and printing products in the Americas, Asia, and Europe. The company’s Performance Materials segment provides plating products, which are used to plate holes drilled through printed circuit boards; circuit formation products to promote adhesion and form circuit patterns; functional conversion coatings for industrial applications; final finishes, which are used on printed circuit boards; electroless nickel products that are applied to metal and plastic surfaces; and oxides, which are conversion coatings used in the fabrication of multilayer circuit boards. This segment also provides decorative plating products; hard-coated films for the membrane switch and touch screen markets; production and drilling fluids; pre-treatment and cleaning solutions; and technical and support services. This segment serves electronics, automotive, and oil and gas production and drilling industries. Its Graphic Solutions segment produces and markets photopolymers through a line of flexographic plates for use in the commercial packaging and printing industries. This segment’s products include solid sheet printing elements, which are used in the flexographic printing and platemaking processes; liquid photopolymers that are used to produce printing plates for transferring images onto commercial packaging printing equipment; and printing equipment, which are thermal plate processing systems. Platform Specialty Products Corporation also offers seed treatments, fungicides, miticides, insecticides, growth regulators, and herbicides. The company was formerly known as Platform Acquisition Holdings Limited and changed its name to Platform Specialty Products Corporation, as a result of its acquisition of MacDermid Holdings, LLC in October 2013. Platform Specialty Products Corporation was founded in 1922 and is headquartered in Miami, Florida. |
Publicly traded companies mentioned herein: Chemtura Corp (CHMT), Jarden Corp (JAH), Platform Specialty Products Corp (PAH)
Highlights
The presenter is long shares of the former special purpose acquisition corp (SPAC) Platform Specialty Products Corp (PAH), and said that he recently added to his position after meeting with management. He thinks highly of both Chairman Martin Franklin (Founder and Executive Chairman of Jarden) and CEO Dan Leever [who was the CEO of MacDermid, PAH’s first acquisition (October 2013)], and noted that Bill Ackman has been involved from the beginning. He cautioned that shares are not cheap at current levels ($23; 20x and 17.5x 2015 and 2016 Street EPS expectations, respectively), but if Franklin (“The Architect”) and Leever (“The Builder”) can execute on their Asset Light, High Touch model (a “people-focused” strategy), paying $1.3 billion more than the total spent on the acquisitions to-date will end up being a bargain.
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