Wed, Jun. 29, 11:15 AM
- Valspar (VAL -0.2%) shareholders have approved the company's buyout by Sherwin-Williams (SHW -0.3%).
- The $11.3B deal (including debt) won approval at a special meeting held this morning. Sherwin-Williams expects heavy synergy as the companies' product mix and geographic splits are complementary.
- The deal's expected to close by the end of Q1 2017 following customary conditions and regulatory approval.
Thu, Apr. 21, 7:04 AM
Wed, Apr. 20, 5:30 PM
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Wed, Apr. 20, 12:27 PM
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
Sun, Mar. 20, 5:14 PM
- Sherwin-Williams (NYSE:SHW) will acquire Valspar (NYSE:VAL) for $113/share in cash, or $11.3B, a 41% premium to VAL's average price over the past 30 days. Excluding assumption of debt, the deal puts an equity valuation of $8.9B on Valspar.
- Sherwin-Williams and Valspar have highly complementary paints and coatings offerings and this combination enhances Sherwin-Williams position as a premier global paints and coatings provider. The transaction results in an exceptional, diversified array of strong brands and technologies, accelerates Sherwin-Williams growth strategy by expanding its global platform in Asia-Pacific and EMEA, and also adds new capabilities in the packaging and coil segments.
- The combined company would have pro forma 2015 revenue and adjusted Ebitda (including estimated annual synergies) of approximately $15.6B and $2.8B, respectively, with approximately 58,000 employees.
- Sees $280M in annual synergies.
- Expects to close by the end of Q1 calendar year 2017.
- They expect that no or minimal divestitures should be required to complete the transaction. In the unlikely event that divestitures are required of businesses totaling more than $650M of Valspar's 2015 revenue, the transaction price would be adjusted to $105/share. Sherwin-Williams would have the right to terminate the transaction in the event that required divestitures exceed $1.5B in 2015 revenue. "These provisions provide Sherwin-Williams and Valspar with greater closing certainty."
- Conference call tomorrow at 8:00 AM ET. Seeking Alpha will have the transcript.
- Source: press release
- Related: Valspar Corporation: Now Might Be Your Chance (Sep. 3)
Wed, Feb. 17, 11:51 AM
Thu, Jan. 28, 7:04 AM
Wed, Jan. 27, 5:30 PM
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Tue, Jan. 5, 7:36 AM
Oct. 29, 2015, 7:09 AM
- Sherwin Williams (NYSE:SHW): Q3 EPS of $3.97 beats by $0.11.
- Revenue of $3.15B (flat Y/Y) misses by $100M.
Oct. 28, 2015, 5:30 PM
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Oct. 21, 2015, 3:47 PM
- Sherwin Williams (NYSE:SHW) declares $0.67/share quarterly dividend, in line with previous.
- Forward yield 1.12%
- Payable Dec. 4; for shareholders of record Nov. 13; ex-div Nov. 10.
Oct. 19, 2015, 7:30 AM
- Sherwin Williams (NYSE:SHW) names John Morikis as its next CEO.
- Morikis, the current COO at the company, will take the position over on January 1.
Jul. 16, 2015, 3:49 PM
- Sherwin Williams (SHW -7.2%) is one of the day's biggest losers after Q2 earnings and revenue came in below consensus and issuing downside guidance for Q3 and FY 2015.
- SHW now sees Q3 EPS of $3.75-$3.90 vs. $4.15 analyst consensus estimate, on revenue growth of 3%-5%, which computes to $3.25B-$3.31B vs. $3.38B consensus; for the full year, SHW now forecasts EPS of $10.60-$11.00 vs. $11.27 consensus Estimate, on revenue growth of 3%-5%, which computes to $11.46B-$11.69B vs. $11.85B consensus.
- SHW says the stronger dollar has hurt demand in some of its international segments, particularly Latin America, while heavy rains slowed construction and paint demand in large parts of the U.S.
- Citigroup’s P.J. Juvekar, who rates SHW at Neutral, says he was surprised at the guidance cut given lower prices for propylene and TiO2, strong momentum at Lowe’s with SHW’s new HGTV paint, respectable 3.9% same-store growth in paint stores, and less forex exposure in its most important business vs. peers.
The Sherwin-Williams Co. engages in the development, manufacture, distribution, and sale of paint, coatings, and related products. It operates through the following segments: Paint Stores Group, Consumer Group, Global Finishes Group, Latin America Coatings Group, and Administrative. The Paint... More
Industry: Specialty Retail, Other
Country: United States
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