Fitch Ratings adjusts ratings following the Sherwin-Williams/Comex acquisition
Fitch Ratings has released its assessment of Sherwin-Williams’ completed acquisition deal with Comex, citing the move’s strategic value and offering an explanation of its adjusted ratings for the company, which it had downgraded from A to A- in May due to the inherent risk of the large transaction.
"Fitch believes that the acquisition of the U.S./Canadian operations has good strategic rationale for SHW," read a company statement. "The acquisition augments its current business mix and provides the company with a meaningful controlled distribution platform in the western U.S. and Canada, where its store count is currently low."
As it stands, the current Fitch Ratings for SHW reflect a Stable Outlook, with an A- for long-term IDR, senior unsecured notes and unsecured bank credit facilities. Short-term IDR and commercial paper are rated F2.
Current ratings are contingent on the company’s receipt of regulatory approval from the Federal Competition Commission of Mexico regarding its acquisition of Comex’s Mexico operations. In the event the acquisition falls through, Fitch will reassess the ratings.
The transaction was initially proposed last November for a pricetag of $2.34 billion, but the actual purchase price came in at $90 million with $75 million in assumed liabilities.
Versatex expands Max dimensions
Versatex Max extruded cellular PVC sheets rolled out 2×8, 2×10 and 2×12 board versions of its 1.5-in. thick product.
In announcing the launch, Versatex president John Pace called the new 2x trimboard “a rapid response to feedback from the people in the field who have been working with the extra-thick 1½-in. PVC sheet we rolled out this spring.”
The idea, according to the company, is to bring the convenience of dimensional lumber to producers of laminated pergola beams, custom mouldings, corbels, spindles and other fabricated items.
The Max product initially launched in 48-in.-wide sheets. “For a lot of applications, the same thickness in a 8-in., 10-in. and 12-in. width is easier to handle,” Pace said. “Now fabricators will be able to save lamination steps and get the job done faster.”
Versatex Max Trimboard is manufactured by Wolfpac Technologies of Pittsburgh.