Mon, Mar. 21, 6:28 PM
- Analysts are bullish on Sherwin-Williams' (NYSE:SHW) $11.3B acquisition of Valspar (NYSE:VAL), believing the merger will provide a big boost to SHW's earnings and could lift the entire paints and coatings sector.
- Susquehanna's Don Carson is bullish on the deal, upgrading his rating on SHW to Positive from Neutral with a $370 price target, hiked from $260; he thinks the deal will be accretive to cash EPS by nearly $4.00 by 2018, including at least $2.05 in synergies, and believes there is little antitrust risk to the deal, since the two companies use different architectural channels in the U.S. and there is no overlap in the industrial coating business.
- VAL's packaging coatings business is a "crown jewel" within the space, and the combination increases SHW's exposure to U.S. do-it-yourself painters, international territories and industrial applications, catapulting SHW into a position of global leadership, Baird analyst Ghansham Panjabi says.
- SunTrust's James Sheehan argues the merger also is positive for PPG Industries (NYSE:PPG), as the deal could improve overall competitive dynamics in the coatings industry.
- In today's trade: VAL +23.2%, SHW -5.3%, PPG -0.1%, AXTA +1%, RPM +1.8%.
Sun, Mar. 20, 5:36 PM
- While Sherwin-William's (NYSE:SHW) logo shows a can of red paint being poured over a globe, bearing the slogan, "Cover the earth," the U.S. and Canada account for about 82% of its sales. The Valspar (NYSE:VAL) acquisition will reduce its North American footprint to 76% by adding sales in Asia and Europe.
- "It gives us the scale and platform" to expand in Europe and Asia, Chief Executive John G. Morikis said.
- Valspar also has strength in two other areas Sherwin doesn't: coatings for food and beverage packaging and for steel coils.
- The pair would have had $15.6B in sales last year, slightly ahead of PPG's (NYSE:PPG) $15.3B. AkzoNobel had 2015 sales of about $16.7B.
- Dmitry Silversteyn of Longbow Research says the plan is very attractive for Valspar shareholders, and should be good for Sherwin in the long run. Valspar is lean, but the combined company should save on corporate overhead, distribution and raw materials. Valspar's No.1 position in coatings for packaging is a big attraction, as is the company's foothold in China.
- Source: WSJ
Mon, Feb. 29, 10:06 AM
- Auto parts distributor LKQ Corp. (LKQ +1%) agrees to acquire Pittsburgh Glass Works from P-E firm Kohlberg & Co. and PPG Industries (PPG -0.2%) for an enterprise value of $635M.
- Pittsburgh Glass Works is a key player in the automotive glass industry, with more than $1 in annual sales and products in automotive OEM and replacement glass as well as parts.
- PPG, which had held a ~40% interest in PGW since 2008, says the sale will allow it to sharpen its focus on its paint, coatings and specialty materials businesses.
Nov. 5, 2014, 4:44 PM
- PPG Industries (NYSE:PPG) says it formally finalized its acquisition of Mexican paints maker Consorcio Comex for $2.3B.
- On Friday, PPG said it had received a favorable ruling from Mexico's competition regulator to complete the purchase, after twice rejecting Sherwin-Williams' proposed takeover for Comex last year on grounds that it would create unfair market conditions.
- Comex had sales of ~$1B in 2013.
Jun. 30, 2014, 8:15 AM
- PPG Industries (PPG) +2.9% premarket after agreeing to acquire privately-held Consorcio Comex, a Mexican architectural and industrial coatings company, in a transaction is valued at $2.3B.
- Comex sold ~$1B of its products in 2013 through ~3,600 stores in Mexico and Central America as well as through regional retailers, wholesalers and direct sales to customers.
- PPG says the deal will be immediately accretive to earnings, and it anticipates acquisition-related synergies of 3%-4% of acquired sales will be achieved over a two-year period.
Jul. 29, 2013, 8:08 AM| Jul. 29, 2013, 8:08 AM
Apr. 11, 2013, 9:34 AMPPG +1% buys Deft Inc., a provider of aviation primers and topcoats, in deal that will broaden PPG's portfolio and ensure it maintains its market position as a "leading aerospace coatings supplier," the company says. Financial terms of the agreement were not disclosed. | Apr. 11, 2013, 9:34 AM
Jan. 28, 2013, 10:20 AM
PPG Industries (PPG -3.1%) sets a final exchange ratio for the split-off of its commodity chemicals business at 3.2562 shares of newly created Eagle Spinco for each PPG share. After PPG's acceptance, Eagle Spinco will merge with a subsidiary of Georgia Gulf (GGC +4.8%) and each Spinco share will convert to one GGC share; the closing of the merger then should conclude later today.| Jan. 28, 2013, 10:20 AM
Jan. 11, 2013, 8:26 AM
Georgia Gulf (GGC) +1.2% premarket as shareholders approve the issuance of shares necessary to complete the pending merger with PPG's commodity chemicals business. Jim Cramer gives his blessing: While GGC is more economically sensitive than PPG because its chemicals are not proprietary, he thinks there's enough demand for its products to move the stock higher.| Jan. 11, 2013, 8:26 AM
Dec. 14, 2012, 4:56 AM
PPG Industries (PPG) agrees to acquire the North American decorative paints business of Akzo Nobel (AKZOF.PK) for $1.1B. The deal will increase PPG's U.S. market share to an estimated 28% from 15% and boost its challenge to Sherwin-Williams, which holds 36%. PPG may also be buying the unit, which sells the Glidden paint brand and recently became profitable, on the cheap: the price represent 0.7X of sales vs 1X for similar deals in the sector. (PR)| Dec. 14, 2012, 4:56 AM
Jul. 19, 2012, 8:11 AM
PPG Industries (PPG) plans to separate its commodity chemicals business and merge it with Georgia Gulf (GGC) in a cash-and-stock deal worth $2.1B. PPG shareholders will receive 50.5% of the shares of the merged company, whose yearly revenue is projected at ~$5B. The deal is expected to close late this year or early 2013. PPG +1.6%, GGC +13.7% premarket.| Jul. 19, 2012, 8:11 AM
Oct. 28, 2011, 2:33 PMThe rumor indicating DuPont (DD +0.5%) is considering selling its auto paint division gains some legs. Bloomberg reports Credit Suisse has been hired to shop around the Performance Coatings division, while Greenhill will sell a small power coatings unit. Potential buyers: PPG, BASFY.PL, AKZOY.PK. | Oct. 28, 2011, 2:33 PM