Platform Specialty Products Lowers Earnings Guidance

Platform Specialty Products Corp., an acquisitive chemical company founded by Martin E. Franklin, said Wednesday that it was lowering its annual earnings guidance because of currency headwinds and weakness in the agricultural segment.

The West Palm Beach, Fla., company said that earnings before interest, taxes, depreciation and the repayment of debt would be between $550 million and $570 million, down from a previous range of $620 million to $650 million.

The company said the change was due to a $25 million impact linked to foreign-exchange volatility, a $10 million hit from a weaker agricultural specialty chemical market, and an estimated $40 million loss from a shift in Platform's distribution strategy in its agricultural business.

Separately, the company said it expected to close by the end of the year the acquisitions of Alent PLC and the first of the OM Group Electronic Chemicals and Photomasks businesses

Platform reached the agreement to buy specialty-chemicals maker Alent in July, valuing the U.K. company at $2.1 billion. In June, Platform announced plans to buy part of OM Group's chemicals business for $365 million.

Additionally, Platform said Benjamin H. Gliklich has been promoted to chief operating officer, effective immediately. Mr. Gliklich was most recently vice president, corporate development, finance and investor relations.

In August, Platform named Sanjiv Khattri its new finance chief.

With the backing of financial heavyweights including activist investor William Ackman, Mr. Franklin created Platform in 2013 as a vehicle to buy specialty-chemicals companies.

It is a familiar strategy for Mr. Franklin, a serial acquirer. He built up Jarden Corp. by acquiring niche consumer-products brands and more recently launched frozen-foods business Nomad Holdings Ltd.

Write to Ezequiel Minaya at [e-mail]

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(END) Dow Jones Newswires

October 07, 2015 08:05 ET (12:05 GMT)

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