This Asset Swap Looks Positive

Article Excerpt

THE SHERWIN-WILLIAMS CO. $55 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 122.8 million; Market cap: $6.8 billion; WSSF Rating: Above average) has agreed to acquire Becker Powder Coatings Inc. of Columbus, Ohio, which makes powdered paints. Manufacturers use these products to apply even coatings to appliances and metal furniture. In exchange, Sherwin will transfer its North American coil coating coatings operations to Becker’s parent company. This transaction strengthens the company’s industrial paint operations. However, Sherwin’s exposure to the sluggish housing market and lead paint class-action lawsuits add to its risk. Sherwin-Williams is still a hold. hold…