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Sherwin-Williams (SHW) to Buy Sika's Industrial Coatings Business
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The Sherwin-Williams Company (SHW - Free Report) has signed an agreement to acquire the European industrial coatings business of Sika AG. The acquired business will become part of the Sherwin-Williams Performance Coatings segment and roughly 130 employees of Sika are expected to join it. The transaction is expected to close in the beginning of 2022.
The Germany-based business, which makes and markets corrosion protection coating systems, generated sales of roughly $82 million for the year ended Dec 31, 2020.
Sherwin-Williams noted that the acquisition is in sync with its strategy of taking over premium, complementary and differentiated businesses that have the potential to contribute to its growth momentum. It expects the newly acquired business to provide unique technology, an efficient sales and marketing team, strategic manufacturing locations and add to scale. It hopes to further leverage these factors across Europe and other regions globally to maintain its strong position. Additionally, it is expecting synergies, which will expedite its already robust financial performance.
Shares of Sherwin-Williams have rallied 34.3% in a year compared to the industry’s growth of 27.3%. The company’s estimated earnings growth rate for the current year is pegged at 14.5%.
Image Source: Zacks Investment Research
In the second quarter, the company recorded adjusted earnings of $2.65 per share, which missed the Zacks Consensus Estimate of $2.68 per share. Its revenues rose roughly 16.9% year over year to $5,379.8 million in the quarter, missing the Zacks Consensus Estimate of $5,384.6 million.
The company expects consolidated net sales to increase in mid-to-high single digit percentage in the third quarter. For 2021, it is expected to increase in high-single to low-double digits. The company expects adjusted earnings per share for 2021 between $9.15 and $9.45.
Currently, Sherwin-Williams carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the construction space include Cavco Industries, Inc. (CVCO - Free Report) , Century Communities, Inc. (CCS - Free Report) and Cornerstone Building Brands, Inc. . While Cavco and Cornerstone Building sport a Zacks Rank #1 (Strong Buy), Century Communities carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cavco has a projected earnings growth rate of 41.8% for the current year. The company’s shares have rallied 21.2% over a year.
Century has a projected earnings growth rate of 119.5% for the current year. The company’s shares have risen 66.5% over a year.
Cornerstone has a projected earnings growth rate of 547.9% for the current year. The company’s shares have climbed 78.9% over a year.
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Sherwin-Williams (SHW) to Buy Sika's Industrial Coatings Business
The Sherwin-Williams Company (SHW - Free Report) has signed an agreement to acquire the European industrial coatings business of Sika AG. The acquired business will become part of the Sherwin-Williams Performance Coatings segment and roughly 130 employees of Sika are expected to join it. The transaction is expected to close in the beginning of 2022.
The Germany-based business, which makes and markets corrosion protection coating systems, generated sales of roughly $82 million for the year ended Dec 31, 2020.
Sherwin-Williams noted that the acquisition is in sync with its strategy of taking over premium, complementary and differentiated businesses that have the potential to contribute to its growth momentum. It expects the newly acquired business to provide unique technology, an efficient sales and marketing team, strategic manufacturing locations and add to scale. It hopes to further leverage these factors across Europe and other regions globally to maintain its strong position. Additionally, it is expecting synergies, which will expedite its already robust financial performance.
Shares of Sherwin-Williams have rallied 34.3% in a year compared to the industry’s growth of 27.3%. The company’s estimated earnings growth rate for the current year is pegged at 14.5%.
Image Source: Zacks Investment Research
In the second quarter, the company recorded adjusted earnings of $2.65 per share, which missed the Zacks Consensus Estimate of $2.68 per share. Its revenues rose roughly 16.9% year over year to $5,379.8 million in the quarter, missing the Zacks Consensus Estimate of $5,384.6 million.
The company expects consolidated net sales to increase in mid-to-high single digit percentage in the third quarter. For 2021, it is expected to increase in high-single to low-double digits. The company expects adjusted earnings per share for 2021 between $9.15 and $9.45.
The SherwinWilliams Company Price and Consensus
The SherwinWilliams Company price-consensus-chart | The SherwinWilliams Company Quote
Zacks Rank & Stocks to Consider
Currently, Sherwin-Williams carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the construction space include Cavco Industries, Inc. (CVCO - Free Report) , Century Communities, Inc. (CCS - Free Report) and Cornerstone Building Brands, Inc. . While Cavco and Cornerstone Building sport a Zacks Rank #1 (Strong Buy), Century Communities carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cavco has a projected earnings growth rate of 41.8% for the current year. The company’s shares have rallied 21.2% over a year.
Century has a projected earnings growth rate of 119.5% for the current year. The company’s shares have risen 66.5% over a year.
Cornerstone has a projected earnings growth rate of 547.9% for the current year. The company’s shares have climbed 78.9% over a year.