Paint retailer, Sherwin-Williams Company(SHW) has reported that it plans to acquire Consorcio Comex on Monday.
Sherwin Williams reported that they have approved an agreement to acquire Mexican paint retailer, Consorcio Comex for the price of $2.34 billion.
Consorcio Comex, which is a company very similar to Sherwin, manufacturers and sells its paint products throughout the Americas. The company is expected to be a good match for Sherman with their high quality products, and convenient geographic location. The acquisition will also expand the company’s distribution throughout North America.
The CEO of Comex, Marcos Achar Levy commented, “we are very pleased and excited to join the Sherwin-Williams team and look forward to making a major contribution to the Company’s ongoing success across the Americas. We have respected Sherwin-Williams for years, and are delighted to now be a partner. Comex and its committed employees know Sherwin-Williams well, and I am confident that joining the Sherwin-Williams family will provide an outstanding future for our employees and customers.”
Sherwin-Williams shares were mostly flat during premarket trading Monday.
The Bottom Line
Shares of Sherwin-Williams (SHW) have a 1.11% dividend yield, based on Friday’s closing stock price of $140.84. The stock has technical support in the $130-$133 price area. If the shares can firm up, we see overhead resistance around the $150 price level.
Sherwin-Williams Company(SHW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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