We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sherwin-Williams Wraps Up $11.3B Acquisition of Valspar
Read MoreHide Full Article
Paint giant, Sherwin-Williams (SHW - Free Report) has wrapped up its $11.3 billion acquisition of Valspar, creating a premier global paints and coatings company. This follows the recent approval of the transaction by the U.S. Federal Trade Commission ("FTC") and the Canadian Competition Bureau ("CCB").
Per the terms of the merger deal, shareholders of Valspar will get $113 per share in cash. As the transaction completed prior to the close of business on Jun 1, the Valspar quarterly dividend payable on Jun 8 will not be paid.
To secure approvals for the merger from the FTC and CCB, the companies in April agreed to sell Valspar's North American Industrial Wood Coatings business assets to Axalta Coating Systems (AXTA - Free Report) for $420 million in cash. The divestiture of these assets was also completed on Jun 1.
The Valspar acquisition allows Sherwin-Williams to reinforce its position as a leading paints and coatings provider globally leveraging highly complementary offerings, strong brands and technologies.
Valspar is a strategic fit and the merger extends Sherwin-Williams’ brand portfolio and customer relationships in North America and bolster its global finishes business. The buyout also significantly enhances Sherwin-Williams’ competitive profile.
The integrated company with pro-forma annual revenues of $15.8 billion has a prominent market position in architectural paint across North America, South America, China, Australia and the UK. It is also a global leader in packaging coatings, coil coatings, general industrial coatings and industrial wood coatings.
Sherwin-Williams expects to achieve $320 million in annual synergies within three years following the deal closure. It also expects the transaction to be immediately accretive to adjusted earnings and to considerably increase its operating cash flow.
Sherwin-Williams’ shares rallied around 16.6% over the past one year on the back of strength in its Paint Stores Group unit, outperforming the Zacks categorized Paints & Allied Products industry’s roughly 11.1% gain.
Sherwin-Williams is benefiting from its cost control initiatives. Moreover, it remains focused on growth through acquisitions and expansion of operations.
Sherwin-Williams plans to announce its financial results for second-quarter 2017 and provide its outlook on the combined company for the third quarter and full-year 2017, on Jul 20, 2017.
Sherwin-Williams is a Zacks Rank #2 (Buy) stock.
Sherwin-Williams Company (The) Price and Consensus
Huntsman has an expected long-term earnings growth of 7%.
Chemours has an expected long-term earnings growth of 15.5%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Sherwin-Williams Wraps Up $11.3B Acquisition of Valspar
Paint giant, Sherwin-Williams (SHW - Free Report) has wrapped up its $11.3 billion acquisition of Valspar, creating a premier global paints and coatings company. This follows the recent approval of the transaction by the U.S. Federal Trade Commission ("FTC") and the Canadian Competition Bureau ("CCB").
Per the terms of the merger deal, shareholders of Valspar will get $113 per share in cash. As the transaction completed prior to the close of business on Jun 1, the Valspar quarterly dividend payable on Jun 8 will not be paid.
To secure approvals for the merger from the FTC and CCB, the companies in April agreed to sell Valspar's North American Industrial Wood Coatings business assets to Axalta Coating Systems (AXTA - Free Report) for $420 million in cash. The divestiture of these assets was also completed on Jun 1.
The Valspar acquisition allows Sherwin-Williams to reinforce its position as a leading paints and coatings provider globally leveraging highly complementary offerings, strong brands and technologies.
Valspar is a strategic fit and the merger extends Sherwin-Williams’ brand portfolio and customer relationships in North America and bolster its global finishes business. The buyout also significantly enhances Sherwin-Williams’ competitive profile.
The integrated company with pro-forma annual revenues of $15.8 billion has a prominent market position in architectural paint across North America, South America, China, Australia and the UK. It is also a global leader in packaging coatings, coil coatings, general industrial coatings and industrial wood coatings.
Sherwin-Williams expects to achieve $320 million in annual synergies within three years following the deal closure. It also expects the transaction to be immediately accretive to adjusted earnings and to considerably increase its operating cash flow.
Sherwin-Williams’ shares rallied around 16.6% over the past one year on the back of strength in its Paint Stores Group unit, outperforming the Zacks categorized Paints & Allied Products industry’s roughly 11.1% gain.
Sherwin-Williams is benefiting from its cost control initiatives. Moreover, it remains focused on growth through acquisitions and expansion of operations.
Sherwin-Williams plans to announce its financial results for second-quarter 2017 and provide its outlook on the combined company for the third quarter and full-year 2017, on Jul 20, 2017.
Sherwin-Williams is a Zacks Rank #2 (Buy) stock.
Sherwin-Williams Company (The) Price and Consensus
Sherwin-Williams Company (The) Price and Consensus | Sherwin-Williams Company (The) Quote
Other Stocks to Consider
Other well-placed companies in the basic materials space include Huntsman Corporation (HUN - Free Report) and The Chemours Company (CC - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman has an expected long-term earnings growth of 7%.
Chemours has an expected long-term earnings growth of 15.5%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>