Andersons Signs Letter of Intent to Buy Skyland Interest

The Andersons, Inc. ANDE announced that it signed a non-binding letter of intent with Skyland Grain, LLC to purchase an ownership interest in Skyland. The deal will offer ANDE with an opportunity to bring greater value to its customers, while positioning itself for the future through globally integrated supply chains.
Andersons have been granted exclusivity under the letter of intent while the parties work in good faith to reach a definitive agreement. Any definitive agreement is subject to the completion of due diligence, approval of both companies' boards of directors, document negotiation, and all applicable (including regulatory) approvals.
Operating in 50 locations across South Central and Southwest Kansas, Northwest Oklahoma, Eastern Colorado, and Texas, Skyland provides grain storage and handling facilities. Skyland's asset footprint and grower relationships complement Anderson's extensive portfolio of assets and expertise.
The planned acquisition is consistent with ANDE's prior strategic investments in its core grain and fertilizer businesses.
Andersons reported adjusted earnings per share of 16 cents in first-quarter 2024, marking  a year-over-year fall of 20%. Revenues in the first quarter went down 30% year over year to $2.72 billion.

Price Performance

Andersons' shares have gained 18% in the past year compared with the industry's growth of 11.4%.

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Zacks Rank & Other Stocks to Consider

Anderson currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, Ecolab Inc. ECL and ATI Inc. ATI. CRS sports a Zacks Rank #1(Strong Buy) at present, and ECL and ATI has a Zacks Rank #2.
The Zacks Consensus Estimate for Carpenter Technology's 2024 earnings is pegged at $4.18 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.1%. CRS shares have gained 134.9% in a year.
The Zacks Consensus Estimate for Ecolab's 2024 earnings is pegged at $6.59 per share, indicating an increase of 26.5% from the prior year's reported number. It has an average trailing four-quarter earnings surprise of 1.3%. ECL shares have gained 34.5% in a year.
The Zacks Consensus Estimate for ATI's 2024 earnings is pegged at $2.41 per share. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 8.3%. The company's shares have rallied 65.9% in the past year.

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