Valspar Investors Approve Tie-Up With Sherwin-Williams
June 29 2016 - 12:33PM
Dow Jones News
By Joshua Jamerson
Valspar Corp. shareholders approved Wednesday the sale of the
paint and coatings maker to Sherwin-Williams Co. after a monthlong
voting process.
Valspar shares fell 0.2% to $107.41 in morning trading in New
York as Sherwin-Williams stock fell 0.4% to $288.92.
Though shareholders approved the deal at a meeting Wednesday, it
could take months for them to find out how much they will get, as
the final payout is contingent on review by antitrust regulators.
Cleveland-based Sherwin-Williams has agreed to pay up to $113 a
share for Valspar, a 35% premium to its share price before the
all-cash deal was revealed in March.
But if the Federal Trade Commission requires that certain
businesses be shed as a condition for approving the sale,
Sherwin-Williams would lower its purchase price. Federal antitrust
regulators are combing through the two companies' business lines in
paint and industrial coatings for potentially unfair market
concentrations.
Though both companies make paint, they have different retail
strategies. Minneapolis-based Valspar sells paint mostly through a
variety of consumer-focused chain stores, including
home-improvement retailers such as Lowe's Co. and Ace Hardware
stores.
Sherwin-Williams relies on more than 4,000 company-owned stores
in the U.S. and Canada to sell paint, primarily to professional
painters and contractors. These specialty paint stores have come
under increasing competitive pressure in recent years from big-box
retailers, and Sherwin-Williams would gain more access to retailers
through the tie-up with Valspar.
The transaction, subject to regulatory approval, is still
expected to close by the end of the first quarter of 2017.
Bob Tita contributed to this article.
(END) Dow Jones Newswires
June 29, 2016 12:18 ET (16:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Valaris (NYSE:VAL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Valaris (NYSE:VAL)
Historical Stock Chart
From Sep 2023 to Sep 2024