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.
If you enjoy the content at iBankCoin, please follow us on Twitter
PPG will buy them both next
The best stuff is Pittsburgh Paint. Their Universal Sealer is like 30% ground quartz.
PPG
$SHW is the not so new $VRX. Hotel of the highest regard until it is not. Crowded as all get out.
$SHW looks like a decent short here on the charts. Easy to be wrong and out.
I am surprised $GILD hasn’t acquired anyone yet, since their huge cash raise last fall. I do like the patience and due diligence, if it is that. Biotech goes apeshit as soon as this happens.
long GILD. add SHW to the screens even if it is a bit boring like AZO and PSA
Used to work for Sherwin. Great company to work for, great stock too.
Speaking of charts..$GE is about to sky
Coffee continues to punch shorts right in the dick
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.
Don’t forget Dutch Akzo Nobel…it’s the European Sherwin.. https://en.wikipedia.org/wiki/AkzoNobel
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.