) has closed its takeover of Italy-based industrial coatings
maker Inver Holding S.r.l. Financial terms of the transaction
were not divulged. The buyout enables Valspar to bolster its
European coatings business.
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 acquisition 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
incite growth. Valspar expects to gain from new businesses in
consumer paints, packaging, coil and wood coatings in second-half
Valspar currently carries a Zacks Rank #2 (Buy).
Other companies in the specialty chemical space with favorabe
Zacks Rank are
KMG Chemicals Inc.
Sensient Technologies Corporation
). While Ferro holds a Zacks Rank #1 (Strong Buy), KMG Chemicals
and Sensient Technologies retain a Zacks Rank #2 (Buy).
FERRO CORP (FOE): Free Stock Analysis Report
KMG CHEMICALS (KMG): Free Stock Analysis
SENSIENT TECH (SXT): Free Stock Analysis
VALSPAR CORP (VAL): Free Stock Analysis
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