Luxfer completes divestiture of graphic arts business

MILWAUKEE - Luxfer Holdings PLC (NYSE:LXFR), a $327 million market cap industrial company with a solid 4.2% dividend yield, announced on Monday it has completed the sale of its Graphic Arts business to Vulcan Metals Specialty Products, Inc., a newly formed affiliate of TerraMar Capital LLC. According to InvestingPro data, the company maintains strong liquidity with current assets more than twice its short-term obligations.

The divestiture follows a strategic review that identified three priorities: selling the Graphic Arts unit, improving performance of Luxfer’s core Gas Cylinders and Elektron segments, and maintaining strategic flexibility for long-term value creation. InvestingPro analysis shows the company operates with moderate debt levels and has maintained profitability over the last twelve months, with a P/E ratio of 13.8x.

"The business no longer aligns with Luxfer’s long-term strategic focus, and this divestiture allows us to sharpen our commitment to innovation and growth in our core Gas Cylinders and Elektron segments," said Andy Butcher, Chief Executive Officer of Luxfer.

Financial terms of the transaction were not disclosed.

Vulcan Metals Specialty Products will continue operating the business, which manufactures magnesium plate and sheet for photo engraving and lightweight engineering markets.

XMS Capital Partners served as financial advisor to Luxfer, while Fried, Frank, Harris, Shriver & Jacobson LLP provided legal counsel for the transaction.

Luxfer, which trades on the New York Stock Exchange, describes itself as a global industrial company that innovates niche applications in materials engineering. The company focuses on high-performance materials, components, and high-pressure gas containment devices used in defense, emergency response, clean energy, healthcare, transportation, and general industrial applications. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued, with additional ProTips and detailed financial metrics available through the Pro Research Report, which provides comprehensive analysis of 1,400+ top stocks.

The announcement was made in a press release statement from the company.

In other recent news, Luxfer Holdings PLC reported its Q1 2025 earnings, showing an adjusted earnings per share (EPS) of $0.23, which exceeded analyst expectations of $0.21. However, the company’s revenue fell short, reporting $90.5 million compared to the forecasted $93 million. The firm maintained a low net debt position and reaffirmed its full-year guidance, projecting flat revenue growth. Additionally, Luxfer’s Annual General Meeting saw the re-election of six directors and the approval of several resolutions, including the re-appointment of PricewaterhouseCoopers LLP as the independent auditor until 2026. Shareholders also voted in favor of a "say-on-pay" advisory vote, aligning with the board’s recommendations. The board received authorization to issue shares and repurchase up to 10% of the company’s issued share capital. Luxfer’s strategic initiatives include potential share buybacks and the divestment of its Graphic Arts business by mid-2025, reflecting its ongoing governance and operational strategies.

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