Yahoo Finance Cornerstone Building (CNR) Divests Coil Coatings Business
Cornerstone Building Brands, Inc. CNR divested its coil coatings business to BlueScope Steel Limited for $500 million in cash, thereby optimizing its portfolio for further growth in the large, deep markets and strengthening its financial flexibility. The transaction, which includes products sold under the Metal Coaters and Metal Prep brands, is subject to certain customary adjustments.
This largest manufacturer of exterior building products in North America also inked a long-term supply deal with BlueScope to secure a continued supply of light gauge coil coating and painted hot roll steel at favorable service levels.
On Jun 28, shares of Cornerstone Building inched up 0.2%.
CNR has been actively involved in acquisitions and divestitures to drive growth. In an attempt to fuel high-growth, high-profitability businesses, it has been divesting assets on a regular basis.
Moreover, on Mar 7, management announced that Cornerstone Building inked a deal with the affiliates of Clayton, Dubilier & Rice (CD&R) to sell its business for $5.8 billion in cash, including the assumption of debt.
Per the deal, CNR’s shareholders will receive $24.65 in cash per share, representing an approximately 16% premium to the closing price of its common stock as of Mar 4, 2022. The deal is expected to close in the second or third quarter of 2022, subject to customary closing conditions, including the receipt of regulatory approvals.
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Shares of this Zacks Rank #3 (Hold) player have surged 73.8% since Feb 4 (the last trading day prior to speculation in the market regarding a potential transaction) against the Zacks Building Products - Concrete and Aggregates industry’s 20.7% fall.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Better-Ranked Stocks in the Construction Sector
Sterling Construction Company, Inc. STRL, a Zacks Rank #2 (Buy) player, is benefiting from broad-based growth across the E-Infrastructure, Building and Transportation solutions segments.
The consensus mark for Sterling’s 2022 earnings has been stable at $2.88 per share over the past 30 days, suggesting 34% growth from the year-ago reported figure.
Granite Construction Inc. GVA, a Zacks #2 Ranked player, is the largest diversified infrastructure company in the United States. GVA has been banking on strategic initiatives, inorganic moves and a strong bidding activity.
Earnings estimates for 2022 have increased to $2.11 per share from $1.97 in the past 60 days. Earnings for the current year are expected to climb 17.2% year over year.
AECOM ACM, with a Zacks Rank of 2, is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and environmental, and energy and water businesses.
AECOM’s expected earnings growth rate for 2022 is 21.6%. The consensus mark for 2022 earnings has moved up to $3.43 per share from $3.40 in the past 60 days.
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