Robbins LLP: Acquisition of The Valspar Corporation (VAL) by The Sherwin-Williams Company (SHW) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of The Valspar Corporation (NYSE: VAL) by The Sherwin-Williams Company (NYSE: SHW). On March 20, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Sherwin-Williams will acquire Valspar. Under the terms of the agreement, Valspar shareholders will receive $113.00 in cash for each share of Valspar common stock.
Is the Proposed Acquisition Best for Valspar and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Valspar is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On February 18, 2016, Valspar reported earnings results for its first quarter 2016. Valspar beat consensus analyst estimates for EPS adjusted in the last ten consecutive quarters. During the quarter, the Company paid a quarterly dividend of $0.33 per common share outstanding, or $26 million. Valspar is a member of the S&P High Yield Dividend Aristocrats®, which is comprised of companies increasing dividends every year for at least 20 consecutive years. In commenting on these results, Valspar Chairman and Chief Executive Officer Gary E. Hendrickson remarked, “The results in the first quarter were in line with our expectations. The quarter was highlighted by new business wins in many of our product lines and strong EBIT growth in our Coatings segment. Our Coatings segment is well positioned for growth, with a robust pipeline of new business and a strong product portfolio, enhanced by the recent acquisition of ISVA Vernici, a European coil coatings manufacturer. In our Paints segment, we have several key new business wins this year, including the introduction of Cabot® stain at Lowe’s. In addition, we expect to benefit from improved productivity and easing year over year comparisons in the balance of the fiscal year. Based on our outlook, we are reaffirming our fiscal 2016 guidance.”
In light of these facts, Robbins LLP is examining Valspar’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Valspar shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Valspar shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.