Paint transactions 2007

From Einhorn Associates' estimates, there were 18 transactions during the first eight months of 2007, versus 14 during that same time period in 2006. This year, we are experiencing the full range of transactions, from management buyouts of small (less than $5 million in sales), to huge mergers between coatings giants. The acquisition leaders so far this year are PPG, Akzo Nobel, and Sherwin-Williams.

PPG is repeating its 2006 strategy of being at the forefront of paint acquisitions with the acquisition of Champion Coatings and offers to purchase SigmaKalon and Barloworld. After the acquisition of Ameron last year, the purchase of Champion was a continuation of PPG's goal to increase its global market share in protective and marine coatings. The transaction included assets, brand names and formulations, but not the facility in Houston.

In July, PPG made an offer to purchase SigmaKalon Group from Bain Capital for about $3 billion. SigmaKalon is an international producer of architectural, industrial and marine coatings, and is a leading coatings supplier in Europe. The acquisition fits in with PPG's strategic geographic and market goals. It would give PPG