hEDGE Mergers & Acquisition Case

“Like an artist who blends two different pigments to make a new vibrant color, we believe the combination of Sherwin-Williams and Valspar Corporation will lead to a dominant player in the Paints & Coatings industry."

Gordon Investment Research presents a look into one of the largest acquisitions of 2017, between Sherwin-Williams and Valspar Corporation. We try to analyze if Sherwin-Williams, after decades of making offers to Valspar Corporation, should pursue a current offer to acquire Valspar Corporation for $106 Cash per share. With hard synergies of $320MM to be recognized by 2018, a current offer that provides Valspar's Shareholders with a 42% premium and an initial accretion estimate of 19.9% 2016E for Sherwin-Williams, we believe this deal has plenty of room left before it closes.

This case was prepared for the hEDGE Conference: Mergers & Acquisition Case Competition, where our team represented the buy-side investment banks (Citigroup & JPMorgan Chase & Co.) to advise Sherwin-William's board.