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Old 03-20-2016, 07:11 PM   #1
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CLEVELAND, Ohio -- Cleveland-based Sherwin-Williams Co. has announced it is acquiring the Valspar Corp., a Minneapolis-based global paints and coatings company, in an all-cash deal for $113 per share, or about $11.3 billion.
The transaction, the biggest acquisition in Sherwin-Williams' 150-year-history, would create a global paint company with combined revenues of about $15.6 billion, adjusted earnings of $2.8 billion, and about 58,000 employees.


http://www.cleveland.com/business/in...iring_val.html
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Old 03-20-2016, 07:18 PM   #2
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@PACman I think you're next on the list of acquisitions
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Old 03-20-2016, 07:25 PM   #3
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@PACman I think you're next on the list of acquisitions
I can only wish. Then i can retire and go sell Behr at Home Depot! My dream job! Then I can walk around and do hardly anything, help every 4th or 5th customer, and get a cool $18 an hour! AWESOME! BUT, remember a few months ago when I told you that some of the SW stores would be closed down and moved into Lowe's stores? Not so frickin' crazy NOW is it? And $15 Billion is a LOT of Promar 200 profit.
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Old 03-20-2016, 07:45 PM   #4
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I can only wish. Then i can retire and go sell Behr at Home Depot! My dream job! Then I can walk around and do hardly anything, help every 4th or 5th customer, and get a cool $18 an hour! AWESOME! BUT, remember a few months ago when I told you that some of the SW stores would be closed down and moved into Lowe's stores? Not so frickin' crazy NOW is it? And $15 Billion is a LOT of Promar 200 profit.
PACman, what's your take on whether SW will eliminate the Valspar line, or re-package it with SW labels? They have to do something sneaky, right?
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Old 03-20-2016, 07:57 PM   #5
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Dang, just saw that now. That's crazy.

Better not mess with my glaze product from Valspar, other than that...we're good.

Rock on Sherwin!
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Old 03-20-2016, 07:58 PM   #6
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Sherwin Williams is literally trying to "cover the earth." True to their slogan.
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Old 03-20-2016, 08:40 PM   #7
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Meh, I've had good luck with Valspar. They made strictly marine coatings in the past. Ive used the top of the line versions from Lowes and can say I've never experienced any issues with it.
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Old 03-21-2016, 02:42 AM   #8
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When did this officially happen
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Old 03-21-2016, 03:36 AM   #9
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Sherwin Williams have opened up down here in Australia too. Looks like they want world domination for the paint market.
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Old 03-21-2016, 09:45 AM   #10
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PACman, what's your take on whether SW will eliminate the Valspar line, or re-package it with SW labels? They have to do something sneaky, right?
They will do what they always do, just what they did with Duron. They will compare the Valspar product line to their own, compare costs and performance, and then they will take any lower cost/better preforming Valspar products and label them as SW products. Just like the old Duron Plastikote/Cashmere transition. Then, they will see what Valspar products are worth continuing, and then they will make them as cheaply as possible. Just business. The big issue is that more and more of the SW corporate paint products will be starting to be manufactured in Mexico at the Comex plants. Using predominantly Imported raw materials (china). Just like every other major manufacturer in the US this is the path they will ultimately have to take to be able to maintain profitability in the market. They will have to reduce material costs and labor costs significantly in the next several years. And moving as much manufacturing to Mexico is the best way to do that.
They can't move manufacturing to China because it is still to expensive and time consuming to ship paint that far. But since I left them this has been a big issue with them, getting to the point where they can take advantage of NAFTA and the much lower labor.

To maintain any profitability in both the diy and commercial markets this is I am afraid what they will have to do. It may not happen overnight but this is the path they are taking. The purchase of Valspar gives them huge growth overseas and access to manufacturing capabilities outside of North America, which as always is the main reason they buy any company.

This also gets them in a great position to leverage Lowe's and Ace's strong positions in the DIY market. Eventually they will begin to move retail paint sales in small or under-performing markets into those Lowe's and possibly Ace stores nationwide and they will begin to close under performing SW freestanding stores. Eventually I BELIEVE that they will close ALL of their retail stores to put those sales into box stores. It is a huge overhead to maintain all of those stores and I don't think they will be able to justify it for long. What you will probably see is fewer SW stores being refocused towards Industrial and commercial painters. Most architectural painters will be forced to buy from box stores instead. This just makes sense for them to do this. 4 years ago I would have thought this was crazy, but looking at some of the things they have done in the last couple of years this seems inevitable.

Anyhoo this transaction still has to go through anti-trust review so it isn't a complete done deal yet. They are planning on being able to go through with the purchase by the end of the first quarter of 2017. Good luck to all of you is all I have to say.
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Old 03-21-2016, 12:37 PM   #11
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Originally Posted by PACman View Post
They will do what they always do, just what they did with Duron. They will compare the Valspar product line to their own, compare costs and performance, and then they will take any lower cost/better preforming Valspar products and label them as SW products. Just like the old Duron Plastikote/Cashmere transition. Then, they will see what Valspar products are worth continuing, and then they will make them as cheaply as possible. Just business. The big issue is that more and more of the SW corporate paint products will be starting to be manufactured in Mexico at the Comex plants. Using predominantly Imported raw materials (china). Just like every other major manufacturer in the US this is the path they will ultimately have to take to be able to maintain profitability in the market. They will have to reduce material costs and labor costs significantly in the next several years. And moving as much manufacturing to Mexico is the best way to do that.
They can't move manufacturing to China because it is still to expensive and time consuming to ship paint that far. But since I left them this has been a big issue with them, getting to the point where they can take advantage of NAFTA and the much lower labor.

To maintain any profitability in both the diy and commercial markets this is I am afraid what they will have to do. It may not happen overnight but this is the path they are taking. The purchase of Valspar gives them huge growth overseas and access to manufacturing capabilities outside of North America, which as always is the main reason they buy any company.

This also gets them in a great position to leverage Lowe's and Ace's strong positions in the DIY market. Eventually they will begin to move retail paint sales in small or under-performing markets into those Lowe's and possibly Ace stores nationwide and they will begin to close under performing SW freestanding stores. Eventually I BELIEVE that they will close ALL of their retail stores to put those sales into box stores. It is a huge overhead to maintain all of those stores and I don't think they will be able to justify it for long. What you will probably see is fewer SW stores being refocused towards Industrial and commercial painters. Most architectural painters will be forced to buy from box stores instead. This just makes sense for them to do this. 4 years ago I would have thought this was crazy, but looking at some of the things they have done in the last couple of years this seems inevitable.

Anyhoo this transaction still has to go through anti-trust review so it isn't a complete done deal yet. They are planning on being able to go through with the purchase by the end of the first quarter of 2017. Good luck to all of you is all I have to say.
Should I get some stock oh wise Pac? 😊
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Old 03-21-2016, 01:11 PM   #12
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Should I get some stock oh wise Pac? 😊
I wouldn't. They paid WAY over the market value per share to do this. Like 30% over value. I would wait a few years and let them regain that expense before I bought stock. Also they have depleted quite a bit of their cash reserves. Let them sell a couple thousand gallons of PM200 to build that up a few Billion first.
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Old 03-21-2016, 01:45 PM   #13
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Just talked to one of my "sources" about SW. I guess my thoughts about them moving most of their production to Mexico is wrong. Apparently they already make a 5hit ton of their paint in Mexico, at least the resin blends.
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Old 03-21-2016, 04:10 PM   #14
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Better?

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Old 03-21-2016, 04:23 PM   #15
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Anyone know why the globe in the SW logo is tilted the way it is? Take a look, it's not in any normal configuration. Major SW street cred to the first person who answers correctly.
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Old 03-21-2016, 05:48 PM   #16
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I heard valspar had quite a bit of debt...
Also found out today that valspar big seller is they spray the coating on the inside of aluminum cans. Lots of beer drinkers out there
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Old 03-21-2016, 06:22 PM   #17
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I think it has something to do with world Peace
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Old 03-21-2016, 07:00 PM   #18
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I'm pissed at myself for not buying Valspar stock, it jumped up 25% today.

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Old 03-21-2016, 10:28 PM   #19
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I'm in a smaller market. If they close our SW then the only place in town for paint is Lowes. I can't imagine the horror of trying to get a custom paint mix there.


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Old 03-22-2016, 01:14 AM   #20
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Anyone know why the globe in the SW logo is tilted the way it is? Take a look, it's not in any normal configuration. Major SW street cred to the first person who answers correctly.
I think it is because they get 86% of their current revenue in the U.S. and are spreading out from there to cover the rest of the world...
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