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NEW YORK (TheStreet) -- LSB Industries (LXU) - Get LSB Industries, Inc. Report stock is soaring by 38.41% to $14.63 on heavy trading volume early Thursday afternoon, as the company said it will sell its climate control business to Sweden-based NIBE Industrier for $364 million.

Proceeds from the transaction will be primarily used to pay down debt, the Oklahoma City-based manufacturing company said in a statement.

"As a result, LSB will have greater financial flexibility and an improved capital structure to execute its growth strategies for its core chemical business, including improving the company's chemical plant on-stream rates," the company added.

The transaction is expected to close in the third quarter and is subject to regulatory approvals and other customary closing conditions.

The climate control business generated about $274 million in revenue and $25 million in EBITDA in 2015.

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About 2.74 million of LSB's shares were traded so far today compared to its average volume of 787,383 shares per day.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: LXU

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