iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,445 Blog Posts

Sherwin Williams Acquires Valspar at 41% Premium

I love monopolies. Just like the good folks at House DuPont patented the color white, these two combined giants will crush the purses of Home Depot shoppers everywhere.

Ok, I’m exaggerating a bit. But this deal does combine two giant manufacturers of paint, something that is bound to provide them with the subtle, yet indelible, comforts of “pricing power.”

Sherwin-Williams will pay $113 a share in an all-cash transaction, the companies said Sunday in a statement. The price is about 41 percent higher than Valspar’s volume-weighted average price for the 30 days through March 18, according to the statement. Valspar closed on Friday at $83.83.

John Morikis, chief executive officer of Sherwin-Williams, is forging the company’s biggest deal ever less than three months after succeeding longtime CEO Christopher Conner. With Valspar, the company adds $4.39 billion of paint sales to its 2015 total of $11.3 billion

I can’t think of any ancillary winners from this deal, just an overall bullish statement for the home improvement market.

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13 comments

  1. thegametheorist

    PPG will buy them both next

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  2. soupbone

    The best stuff is Pittsburgh Paint. Their Universal Sealer is like 30% ground quartz.

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  3. ironbird

    $SHW is the not so new $VRX. Hotel of the highest regard until it is not. Crowded as all get out.

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    • moosh

      $SHW looks like a decent short here on the charts. Easy to be wrong and out.

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  4. moosh

    I am surprised $GILD hasn’t acquired anyone yet, since their huge cash raise last fall. I do like the patience and due diligence, if it is that. Biotech goes apeshit as soon as this happens.

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  5. blahblahblah

    long GILD. add SHW to the screens even if it is a bit boring like AZO and PSA

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  6. sethster99

    Used to work for Sherwin. Great company to work for, great stock too.

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  7. moosh

    Speaking of charts..$GE is about to sky

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  8. grandmaster

    DOJ will sink their fangs into this deal. If VAL (which has rev of $4B plus) has to divest more than 625M, the buyout drops to $105. If they have to divest more than $1.2B they can walk away from the deal.

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  9. dvk1970

    Don’t forget Dutch Akzo Nobel…it’s the European Sherwin.. https://en.wikipedia.org/wiki/AkzoNobel

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  10. matt_bear

    i wish i could back in time 100 years and buy sherwin williams stock. illuminati status with that growth and dividend over the last couple generations.

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