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.
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.
- Related: Valspar Corporation: Now Might Be Your Chance (Sep. 3)
Jul. 18, 2013, 9:58 AM
Mexico's Federal Competition Commission has blocked Sherwin Williams' (SHW -8.4%) $2.34B acquisition of paint company Consorcio Comex in a deal that the American company said would boost its presence in the U.S. West Coast and Canada, as well as in Mexico. Sherwin Williams plans to appeal, and remains "hopeful that we can adequately address the Commission's objections and proceed with the transaction." (Q2 earnings)| Jul. 18, 2013, 9:58 AM
Nov. 12, 2012, 9:34 AM
More on Sherwin-Williams' (SHW) acquisition of Comex: "This transaction will significantly increase our presence in markets where our store count is low, (and) it builds upon our strategy to grow our architectural paint business in the Americas," says SHW CEO Christopher Connor. Comex operates in Latin America, the U.S. and Canada, and generated 2011 sales of $1.4B. SHW +5.4%.| Nov. 12, 2012, 9:34 AM
Nov. 12, 2012, 9:22 AM
Sherwin-Williams (SHW +1%) agrees to acquire privately-held Consorcio Comex, a Mexican provider of paints and coatings, in a deal valued at $2.34B, including debt. (PR)| Nov. 12, 2012, 9:22 AM