Stockwinners Market Radar for December 15, 2019 - Earnings, Upgrades downgrades, option trades, Best Stock Advisory Service

16:03 EST IFF to merge with DuPont's Nutrition & Biosciences unit via Reverse Morris Trust - IFF (IFF) and DuPont (DD) announced that they have entered into a definitive agreement for the merger of IFF and DuPont's Nutrition & Biosciences business in a Reverse Morris Trust transaction. The deal values the combined company at $45.4B on an enterprise value basis, reflecting a value of $26.2B for the N&B business based on IFF's share price as of December 13. Under the terms of the agreement, which has been unanimously approved by both boards, DuPont shareholders will own 55.4% of the shares of the new company and existing IFF shareholders will own 44.6%. Upon completion of the transaction, DuPont will receive a one-time $7.3B special cash payment, subject to certain adjustments. Upon closing, the new company's board will consist of 13 directors: seven current IFF directors and six DuPont director appointees until the annual meeting in 2022, when there will be six directors from each company. Andreas Fibig will continue to be the Chairman of the Board and an IFF appointee, he will also continue as Chief Executive Officer. The company will be headquartered in New York. DuPont Executive Chairman, Ed Breen, will join the board of the combined company as a DuPont appointee and will serve as Lead Independent Director starting June 1, 2021. IFF expects to realize cost synergies of approximately $300M on a run-rate basis by the end of the third year post-closing. In addition, the combined company's target is to deliver more than $400M in run-rate revenue synergies, which would result in more than $175M of EBITDA. IFF said it is "committed to maintaining an investment grade rating and plans to delever from approximately 4.0x at transaction close to below 3.0x by year two following closing." Following the close of the transaction, IFF expects that "substantially all of the debt of the combined company will be pari passu." IFF and N&B have obtained fully-committed debt financing from Morgan Stanley and Credit Suisse.

15:58 EST DuPont holders will own 55.4% of combined International Flavors company

14:25 EST Electrolux sees $70M charge in Q4 from North America consolidation - Electrolux provided an update on issues expected to impact operating income for its business area North America in Q4, primarily the consolidation of its U.S. refrigerator/freezer manufacturing and related transition to new product platforms. Electrolux expects costs related to the transition, volume effects and other matters in the quarter to have a combined impact of a total approximately $70M. Electrolux is currently investing approximately $250M in automation, digitalization and new food preservation product platforms at a new facility in Anderson, South Carolina. This new facility will replace manufacturing in St Cloud, Minnesota and manufacturing at an adjacent facility in Anderson. The company said, "The transition to the new facility has resulted in temporary capacity constraints impacting deliveries to some customers in the fourth quarter. As a result of this, as well as of increased costs, the transition is now expected to have a larger impact on operating income in the fourth quarter than the approximately USD -25 million communicated previously. Additionally, the operating income will be impacted negatively by two other factors: destocking at a key U.S. customer and accounting adjustments from prior periods." Electrolux expects the capacity constraints in Anderson to be gradually resolved during the first half of 2020.