Elementis PLC (LON:ELM) has made a big move into the world of anti-perspirants with the acquisition of chemical additives group SummitReheis in a debt and cash deal worth US$360mln. SummitReheis specialises in the chemicals used by the deodorant makers and has a quality cache though regulatory approvals in both the US and Europe. It will become part of an enlarged personal care business within Elementis and more than triple that division’s annual sales to US$200mln, though anti-perspirants are a US$13bn market with emerging markets seeing new growth and established areas shifting upmarket. Elementis, which will pay for the deal through its own cash resources and a US$475mln debt facility, said it can enhance these with its hectorite and Rheoluxe rheology modifiers. SummitReheis’s underlying profits in 2016 were US$28mln on sales of US$134mln. Paul Waterman, Elementis’s chief executive, said personal care as a key opportunity, driven by long term positive demographic trends and an increasingly sophisticated consumer. Markets like the deal, sending Elementis shares up 8% to 297.2p. Boxhill Technologies PLC (LON:BOX) was a faller as it warned progress in the payments division has slowed during the second half of the year due to new regulations introduced by card scheme operators and acquiring banks. This has led to a slowdown in credit card processing. Lord Razzall, executive chairman, said: "The changes to regulations for credit card processing introduced particularly by Visa have resulted in a temporary slowdown in the operation of the Payments Division. We have taken this opportunity to develop and enhance the business in ways which will produce positive results in the coming months, as will the development of EmexGo.” Share fell 18% to 0.154p. Billington Holdings Plc (LON:BILN), was another faller, down 8% to 226p, even though its short trading statement seemed upbeat enough. “Results are anticipated to be in line with market expectations and the Board is particularly pleased with the progress made at the new Shafton facility.” Mark Smith, chief executive said: "2016 was a busy year for Billington and we are encouraged that the group's divisions continue to perform amongst the best in their respective fields.” Electrocomponensts PLC (LON:ECM) was another that was marked down despite what seemed like a solid trading update. “We have continued to make good progress on our initiatives to improve the customer experience, stabilise gross margin and reduce costs, and as a result we have delivered strong revenue growth and improved profitability during the period”. “!n the four months to 31 January 2017, group underlying revenue growth accelerated to 6%, with all of our regional hubs seeing positive revenue trends during the period.” Shares fell 4% to 486p.
9.35am ...FIH Group to go private after Rowland family bid
FIH Group PLC (LON:FIH) topped the early risers as it received a 300p per share cash bid from Blackfish Capital vehicle Staunton.
Blackfish, controlled by the Rowland Purpose Trust 2001, owns 22.7% of FIH, whose executive chairman is Edmund Rowland.
FIH runs a diverse group of operations including oil services and a car dealership on the Falkland Islands, the Portsmouth Harbour ferry and art dealer Momart.
The offer values FIH in total at £37.3mln and has been recommended by the independent directors. Shares rose 24% to 293p.
Amur Minerals PLC (LON:AMC) rocketed 18% to 14.9p as its latest resource estimate from Kun-Manie in Russia indicated over one million tonnes of nickel worth US$10.5bn at current prices.
Amur is valued at £88mln after today’s jump and some investors are clearly joining up the dots even if building a mine will still require a massive financial commitment.
TLA Worldwide (LON:TLA) climbed 9% as it continued its mission to introduce Australia to sports other than cricket, rugby and Aussie Rules.
Having already organised American college football, it is now staging an Argentina v Brazil football match in Melbourne as part of the Chevrolet Brazil Global Tour.
The game will be played on 9 June at the 100,000 seater Melbourne Cricket Ground (MCG), which is already one of the world's iconic sporting venues. Shares rose 9% to 30p.