Chemtrade climbs to five-year high after 'home run' $150M deal for Polytec

[Chemical & Petrochemical Plant]
zorazhuang/E+ via Getty Images

Chemtrade Logistics Income Fund (OTC:CGIFF [https://seekingalpha.com/symbol/CGIFF]) +9.8% in Friday's trading to its highest since January 2020 after unveiling an agreement to acquire [https://seekingalpha.com/pr/20202086-chemtrade-logistics-income-fund-to-acquire-polytec-a-provider-of-turnkey-water-treatment] Polytec, a U.S.-based provider of turnkey water treatment solutions, for US$150M, in a deal Scotiabank called a "home run" that will drive instant growth.

Chemtrade (OTC:CGIFF [https://seekingalpha.com/symbol/CGIFF]) said the addition of Polytec will expand its footprint in water solutions for the food-processing industry and municipal markets while also adding to its range of products.

Scotiabank analyst Ben Isaacson upgraded Chemtrade (OTC:CGIFF [https://seekingalpha.com/symbol/CGIFF]) to Sector Outperform from Sector Perform with a C$15 price target, raised from C$13.50, calling the Polytec deal a "home run" and a way to diversify the company's customer base and expand market reach.

"We generally like the move out of ag/ferts and into slightly more cyclical chemical exposure," Isaacson wrote, seeing the deal adding 6%-7% instant growth to EBITDA without straining the balance sheet.

Chemtrade (OTC:CGIFF [https://seekingalpha.com/symbol/CGIFF]) also reported Logistics reported mixed Q2 results [https://seekingalpha.com/news/4486057-chemtrade-logistics-income-fund-reports-q2-results], with earnings that lagged expectations and sales that topped estimates.

MORE ON CHEMTRADE LOGISTICS INCOME FUND

* Chemtrade Logistics Income Fund Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4814152-chemtrade-logistics-income-fund-2025-q2-results-earnings-call-presentation]
* Chemtrade Logistics Income Fund Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4814151-chemtrade-logistics-income-fund-cgiff-q2-2025-earnings-call-transcript]
* Chemtrade Logistics: Growth Ambitions Confirmed By Strong Q1 [https://seekingalpha.com/article/4792087-chemtrade-logistics-growth-ambitions-confirmed-by-strong-first-quarter]