RPM Redlining On Value
Stephen Simpson, CFA
Stephen Simpson, CFA
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%.
Apr. 14, 2015, 9:53 AM
- Announcing another acquisition, RPM (RPM -0.2%) says its tremco illbruck group has purchased Firetherm, a U.K. market leader in fire-stopping solutions for the construction industry.
- Firetherm has annual net sales of approximately $10M.
- Previously: RPM acquires U.K.'s largest wood finishes manufacturer (Apr. 13 2015)
Apr. 13, 2015, 9:14 AM
- RPM has purchased Morrells Woodfinishes, the U.K.'s largest manufacturer of high-performance wood finishes. The unit will become a stand-alone operation within RPM2's Wood Finishes Group.
- Morrells has annual net sales of approximately $33M and nearly 150 employees.
Jul. 7, 2014, 9:22 AM
Jan. 22, 2014, 2:16 PM
- RPM International (RPM -0.9%) acquires concrete/wood deck coatings maker Citadel Restoration and Repair. Terms were not disclosed.
- Citadel has annual sales of ~$10M. RPM does not expect the acquisition to be accretive to earnings in the next year.
Jun. 19, 2012, 4:09 PM
RPM International (RPM) says it's acquired Viapol Ltda., a leading Brazilian manufacturer and marketer of building materials and construction products for around $85M. Shares +2.5% AH.| Jun. 19, 2012, 4:09 PM
RPM International, Inc. engages in the manufacture, marketing and sale of coatings and sealants. It operates through two segments: Industrial and Consumer. The Industrial segment products and services include construction chemicals, roofing systems, weatherproofing and other sealants, polymer... More
Sector: Industrial Goods
Industry: General Building Materials
Country: United States
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