PAH

Platform Specialty Products Corp

Industrial/Transportation, SPAC


Presented:03/28/2017
Price:$12.95
Cap:$3.76B
Current Price:$9.06
Cap:$2.33B

Presented

Date03/28/2017
Price$12.95
Market Cap$3.76B
Ent Value$7.81B
P/E RatioN/A
Book Value$9.63
Div Yield0%
Shares O/S290.00M
Ave Daily Vol2,223,660
Short Int20.38%

Current

Price$9.06
Market Cap$2.33B
Platform Specialty Products Corp. provides technology specialty chemical products and technical services. It operates its business through the Performance Solutions and Agricultural Solutions segments. The Performance Solutions segment formulates and markets chemistry solutions that are used in automotive production, commercial packaging and printing, electronics, and oil and gas production and drilling. The Agricultural Solutions segment is based on a solutions-oriented business model that focuses on product innovation to address an ever increasing need for higher crop yield and quality. The company was founded by Martin E. Franklin on April 23, 2013 and is headquartered in West Palm Beach, FL.

Publicly traded companies mentioned herein: Platform Specialty Products Corp (PAH)

Highlights

The presenter is long shares of Platform Specialty Products (PAH) and sees upside to $16-17 (from ~$13) over the next 12-24 months based on EBITDA growth and deleveraging. He arrives at this target using a potentially conservative 11x EBITDA multiple. Overall, he views PAH’s business as a good one, and at ~6.5x leverage today the potential for deleveraging is an important “value creation lever”. In his opinion, many investors have shied away from PAH following the unraveling of its acquisition strategy and fears about the debt burden. These issues sent the stock to the mid-single digits (~$6); however, both the Agricultural Solutions and Performance Solutions businesses are stable-to-growing and the company is expected to generate over $200mm of FCF in 2017 (with minimal capex).

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Idea Discussion

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