In a bid to bolster its European coatings business,
) has agreed to buy Italy-based industrial coatings maker Inver
Holding S.r.l. for an undisclosed price. The transaction, which
is subject to regulatory clearance and other customary closing
conditions, is expected to complete in fourth-quarter fiscal
AMER VANGUARD (AVD): Free Stock Analysis
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Inver, which had sales of roughly $200 million last year, makes
liquid and powder coatings products and resins that are used in
an array of industrial applications including off-road equipment,
auto, architectural aluminum windows and railways. The entity
primarily serves customers in the UK, France, Germany and Poland.
The buyout is in sync with Valspar's growth strategy for its
industrial coatings business and is expected to reinforce its
position in the $6 billion European industrial coatings market
and offer operational synergies. Valspar will leverage Inver's
strong product portfolio, leading technology and distribution
network to better serve its customers in Europe.
Valspar has a strong pipeline of new products and significant
opportunities for share gains in both its Paints and Coatings
segments. The company is managing its cost well and maintaining a
cost structure that is appropriate for the current external
environment. Valspar should also benefit from its restructuring
actions in fiscal 2013.
Winning new businesses also remains a company-wide focus that
will position Valspar well for the future. The company remains
committed to make prudent investments in world's largest
industrial markets such as China, Europe and Latin America to
Valspar, in Jan 2013, acquired the paint manufacturing assets
from Ace Hardware Corporation. The acquisition boosts its retail
foothold in the U.S. and offers incremental revenues from the
sale of Ace-branded paints. Valspar expects to gain from new
businesses in consumer paints, packaging, coil and wood coatings
in second-half fiscal 2013.
Valspar currently carries a Zacks Rank #2 (Buy).
Other companies in the specialty chemicals industry with
favorable Zacks Rank are
OM Group Inc.
). While both American Vanguard and OM Group hold a Zacks Rank #1
(Strong Buy), Ferro retains a Zacks Rank #2 (Buy).