PAINTING BY NUMBERS - QMG data positive on Sherwin Williams/Valspar deal
Sherwin-Williams (SHW US) announced a $9.3bn acquisition of rival pain maker Valspar (VAL US). In addition to acquisition cost, SHW will assume $2bn of debt and the $113/share all cash offer represents a 41% premium to 30-day average VAR share price. Good news if you owned VAL – which was not represented in QMG ‘Best Ideas’ portfolio! But what about if you own SHW? Outside of valuation (which QMG does not offer any comment), our analysis highlights positive momentum across the major products to which SHW and VAL are exposed. In effect, our analysis suggests strong fundamental support for this deal... QMG Subscribers can access the full report here: (VIEW LINK)
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