American Media, Inc. announced that it has received a final payment of $19 million as part of its agreement to sell Shape to Meredith Corporation. This payment closes the three-year profit sharing agreement between the companies. AMI received an initial payment of $60 million in 2015. The total valuation of $79 million represents a seller’s multiple of more than 13x Shape’s earnings on a stand-alone basis at the time of the acquisition and a buyer’s multiple of 8x on a contribution basis. Click Read More below for additional information.
Oil steadied after its longest run of weekly declines in three years, as traders weighed threats to economic activity in emerging markets against risks to supplies around the world. Futures in New York were little changed. Prices fell for a seventh week last week as the currency crisis in Turkey raised fears of contagion, further rattling investors already worried by the ongoing trade dispute between the U.S. and China. At the same time, crude was buoyed by North Sea strikes, stagnant U.S. drilling and continued concern that American sanctions will hurt Iranian sales. Click Read More below for additional information.
Brick-and-mortar retailers should look to impulse purchases as a focal area for growth. According to a new report from general merchandise and health-beauty-and-wellness trade association GMDC, books, trial and travel, and grilling are continually beating total store growth within physical retailers — and each of these categories represents products commonly considered impulse purchases. The growth in sales among these three product categories reinforces the impulse purchase as a focal area for growth among brick-and-mortar retailers, GMDC advised. Click Read More below for additional information.
Forest Products Association of Canada CEO Derek Nighbor issued the following statement after U.S. President Donald Trump’s comments partially blaming Canadian lumber imports for forest fires in California. “First and foremost our thoughts are with people in Canada and the U.S. who have been displaced from their homes or are on evacuation alert, and with our first responders who are valiantly battling fires on both sides of the border,” said Nighbor. “The U.S. simply does not have the milling capacity to meet consumer needs and are only able to satisfy about 75 per cent of American wood demand. Unfortunately, Americans are being forced to pay higher prices for wood products because of U.S. tariffs on Canadian lumber. The U.S. could provide an immediate discount to Americans rebuilding after fires by rescinding tariffs on Canadian lumber, which has increased the cost of lumber by 20 per cent.” Click Read More below for additional information.
Tronox Limited, a global mining and inorganic chemicals company, announced that it has received final approval from the European Commission to close its proposed acquisition of the titanium dioxide ("TiO2") business of The National Titanium Dioxide Company Limited ("Cristal"), a privately held global chemical and mining company headquartered in Jeddah, Saudi Arabia. The final approval was issued following the European Commission's conclusion that Venator Materials PLC (NYSE : VNTR ) ("Venator") is a suitable purchaser of Tronox's 8120 paper-laminate product grade currently supplied to European customers from Tronox's Botlek facility in the Netherlands. Divesture of this product grade was the condition set forth in the conditional approval granted to Tronox by the European Commission on July 4, 2018. Consummation of the divestiture of the 8120 paper-laminate product grade will occur following approval of the overall Cristal acquisition transaction by the U.S. regulatory authorities, which Tronox is vigorously pursuing in the U.S. District Court of the District of Columbia. Click Read More below for additional information.
Due to continued cost increases and solid demand, Sappi is forced to pass on this cost inflation by increasing its CWF and UWF prices in sheets and reels by 6-8% effective on deliveries from October 1st 2018 for all European and Overseas markets.
SECOND QUARTER SUMMARY: • Second quarter net earnings were $162 million compared with $110 million during the same period in fiscal 2017. The increase was driven primarily by higher sales volume, a lower effective tax rate and the impact of the new revenue recognition standard as it relates to the timing of the Anniversary Sale. • In Full-Price, comparable sales increased 4.1 percent. The top-ranking merchandise categories were Kids' Apparel and Beauty. • In Off-Price, comparable sales increased 4.0 percent. • Sales from Nordstrom Rewards customers represented 58 percent of second quarter sales, compared with 56 percent a year ago. • Gross profit, as a percentage of net sales, of 35.0 percent increased 91 basis points compared with the same period in fiscal 2017. Click Read More below for additional information.
Gov. Matt Bevin today announced Global Win Wickliffe LLC, a Chinese-owned paper products manufacturer, will reopen the former Verso Corp. mill in west Kentucky’s Ballard County with a $150 million investment expected to create 500 full-time jobs. Executives of Global Win Wickliffe signed a purchase agreement today with representatives of Verso to buy the facility for approximately $16 million. The sale is expected to close around the beginning of the third quarter of this year. The new owners plan to refurbish the mill with new equipment and updated technology. Global Win Wickliffe executives anticipate reopening the mill by the end of 2018, with the facility producing pulp and brown paper packaging. The paper mill will be the buyer’s first US facility. Click Read More below for additional information.
Cenveo, Inc. announced that the United States Bankruptcy Court for the Southern District of New York has confirmed its plan of reorganization, paving the way for the Company to emerge from Chapter 11 in the coming weeks. The terms of the Plan will enable the Company to exit Chapter 11 with a substantially deleveraged balance sheet and increased liquidity, allowing the Company to focus on its operations and grow its businesses. Prior to filing for Chapter 11, the Company's liabilities included approximately $1.1 billion in funded debt. Upon emergence, the Company's funded debt will be reduced by over $800 million to approximately $325 million. Click Read More below for additional information.
National Average Price for Regular – Current: $2.850; Month Ago: $2.871; Year Ago: $2.344. National Average Price for Diesel – Current: $3.149; Month Ago: $3.167; Year Ago: $2.528.