The Valspar CorporationVAL declared that it has wrapped up the acquisition of ISVA Vernici - a European coil coatings maker headquartered in Turin, Italy. With this acquisition, Valspar has strengthened its manufacturing foothold in Europe. The buyout enables the company to provide its customers with an expanded product offering as well as improved services. However, financial terms of the deal were not divulged.
In addition, ISVA is well positioned in southern Europe which will help expand Valspar Coil's global footprint, extending its presence in North Africa and the Gulf region. Thus, customers will gain access to coating technologies from ISVA along with Valspar's technical expertise and global manufacturing capabilities.
Winning new businesses remains a company-wide focus that will position Valspar well for the future. New business wins have contributed around 4% annually to its growth over the last several years and are expected to continue being a major driver in 2016.
Valspar has a broad product portfolio and significant opportunities for share gains in both its Paints and Coatings segments. Moreover, new business wins, productivity actions, investments in growth initiatives and geographic expansion should benefit the company.
However, Valspar faces currency headwinds, stemming from a stronger U.S. dollar. Also volatility in raw material costs can invariably dent the company's profit margins.
Valspar currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials sector include Koninklijke DSM N.V. RDSMY , Daqo New Energy Corp. DQ and KMG Chemicals Inc. KMG , all sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KONINKLIJKE DSM (RDSMY): Free Stock Analysis Report
DAQO NEW ENERGY (DQ): Free Stock Analysis Report
VALSPAR CORP (VAL): Free Stock Analysis Report
KMG CHEMICALS (KMG): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
