“We’re looking at gaps in technology offerings and [improving] channels to market. We’re looking at whether we can develop this organically, or through M&A, alliances, and joint ventures. I’m going to work all the levers I can to fill those gaps.” George Hamilton, president of Dow Coating Solutions, a division of Dow Chemical (DOW).
Enough is enough. Shares of Sherwin Williams (SHW) are practically being given away at he current price. For more on that, see this November, 2007 post. Dow has been yammering about expanding it coating business for two years now. Can anyone think of a better way to “improve the customer experience and gain a better understanding of the markets,” and “make it easier for a customer to give us more of their [coatings] purchasing dollars,” as Hamilton also said than purchase one of the world largest distributors of the stuff?
Dow says the recent formation of Hamilton’s business unit for its $2.5-billion coatings business will enable above market growth in the $40 billion a year coatings sector. Hamilton’s remarks about M&A are directly in line with those of Dow CEO Andrew Liveris. Let’s also not forget Dow has a $9 billion dollar check coming this year from the Saudi’s in conjunction with its 50% interest sale of its Commodity Chemical Business.
The cash with be there with plenty left over to swallow Sherwin.
Let’s also not forget that recently Farallon Capital Management recently picked up 5.2% of Sherwin’s shares. Why? Farellon says their investments are “primarily those in which a known or expected event (a merger, restructuring, recapitalization or other major change) will cause an appreciation in the value of the particular investment.”
Mr. Liveris, lets just get this done….If for no other reason you’ll make me look like a genius 🙂
Disclosure (“none” means no position):Long DOW, SHW
Visit the ValuePlays Bookstore for Great Investing Books
This work is licensed under a Creative Commons Attribution 2.5 License.