Sherwin-Williams Company (SHW): The Company Should Keep Winning From Housing Bounce

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But the industry has gone through some major merger and acquisition activity recently. Sherwin-Williams announced last November that it will acquire Mexico’s Consorcio Comex for $2.34 billion, giving the company greater geographical and product diversity. That’ll be an important source of growth for Sherwin-Williams Company (NYSE:SHW), as rival PPG Industries, Inc. (NYSE:PPG) recently closed on its $1.05 billion acquisition of Akzo Nobel and its architectural coatings business. Moreover, with E I Du Pont De Nemours And Co (NYSE:DD) having sold off its performance-coatings business, which focuses largely on automotive paint, to private equity firm Carlyle Group LP (NASDAQ:CG), Sherwin-Williams needed to boost its size in order to keep up with its competition.

In its earnings report, watch for Sherwin-Williams Company (NYSE:SHW) to give investors on how its retail stores did compared to its more commercially oriented business segments. If the housing recovery is for real, both businesses should contribute positive results that together could send Sherwin-Williams to even loftier heights.

The article Sherwin-Williams Should Keep Winning From Housing’s Bounce originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Sherwin-Williams.

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