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101 South Third Street Minneapolis, MN USA
Valspar is a wholly-owned subsidiary of The Sherwin-Williams Company. Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers.
Markets Served: Architectural coatings, General industrial; Coil coatings, Wood coatings, Automotive refinish
In 2016, CEO Gary Hendrickson reported, “Valspar delivered another year of what matters to our customers, shareholders, employees and the communities we serve. At Valspar, we create value and achieve strong financial results by investing in differentiated technologies, producing high-quality products, building brands consumers trust, and providing outstanding customer service.”
Coatings Segment In 2016, Valspar won new business in every Coatings product line. In Packaging, Valspar is the global leader and continues to drive the market in non-BPA coatings. During 2016, Valspar received excellence awards from several packaging customers for the best quality products and technical service.
In Packaging Coatings, Valspar is also an innovator and leader. An example is valPure V70, the first non-BPA series of can coatings that match the performance benefits of BPA-based coatings. valPure V70 is a breakthrough in epoxy technology for light metal packaging for food and beverage manufacturers looking for industry-standard performance from a non-BPA solution.
In architectural coil and extrusion coatings, Valspar announced the completion of the ISVA Vernici acquisition, a European coil coatings manufacturer headquartered in Turin, Italy. The ISVA acquisition extends Valspar’s manufacturing footprint in Europe and brings customers an expanded product offering and increased customer service capabilities.
At the recent MetalCon 2016 in Baltimore, Maryland, Valspar highlighted its two new Fluropon family of coatings, Fluropon Pure and Fluropon Extreme, and a new Fluropon Effects color palette, Rustica.
Paints Segment The Valspar portfolio of brands is available in more than 20,000 points of distribution worldwide. Together with its retail partners, Valspar is driving sales and building a loyal following for Valspar brands through best-in-class retail service, new product innovation, and world-class marketing and merchandising support.
According to the firm, in North America, Valspar is making it easier than ever for seasoned do-it-yourself enthusiasts and novices alike to tackle interior and exterior home improvement projects with the launch of its Valspar 2016 Colors of the Year, four trend palettes defined as Comfort Zone, Simply Perfect, You Do You and Good Company. Valspar developed a custom hub on Purewow.com complete with video of Valspar Color Ambassador, Genevieve Gorder, at home in her New York City studio.
Cabot launched a new luxurious finish, Cabot Gold, that blurs the lines between indoor and outdoor living with features that give homeowner’s what they really want – beauty, according to the company. The new Cabot Woodcare stain product is perfect for decks and outdoor furniture.
Valspar Paint also launched an innovative interactive consumer paint resource dedicated to delivering the highest caliber of personalized service to do-it-yourselfers.
AskVal.com is a paint industry pioneer in color exploration and color selection, offering an unprecedented collection of complementary tools to guide the color decision process including a first-of-its-kind Pinterest Analyzer, free expert design advice, color matching, color personality quiz and free paint chip delivery.
Internationally, Valspar continued to grow its business through the extension of its brands and channels of distribution and new retail partnerships. In the UK, The Valspar Consumer team has launched a line of paint sundries and supplies in all 330 B&Q retail home improvement stores. The product line includes brushes, a mini roller set, 9-inch roller set, and masonry and emulsion roller sleeves.
“Our strong tradition of community involvement plays a significant role in employee satisfaction, and we are proud to provide grants and volunteer opportunities focused on strengthening communities. As the national paint partner for Habitat for Humanity, Valspar donates paint for every Habitat home built or restored in the United States. To date, Valspar has provided over two and a half million gallons of paint, and our employees have logged thousands of hours of volunteer time.
Markets Served: Architectural coatings, General industrial, Coil coatings, Wood coatings, Automotive refinish
2015 was another record year of earnings performance for Valspar.
“In 2015, Valspar delivered another year of what matters to our customers, shareholders, employees and the communities we serve,” Gary Hendrickson, CEO of Valspar. “At Valspar, we create value and achieve strong financial results by investing in differentiated technologies, producing high-quality products, building brands consumers trust, and providing outstanding customer service.”
Coatings Segment In 2015,Valspar won new business in every Coatings product line. In Packaging, Valspar is the global leader and continues to drive the market in non-BPA coatings. During 2015, Valspar received excellence awards from several packaging customers for the best quality products and technical service.
In General Industrial, Valspar is also an innovator and leader. “An example is Aquaguard, a breakthrough water-based coating used by leading shipping container manufacturers. Aquaguard provides superior corrosion protection while reducing volatile organic compounds (VOCs) by up to 94 percent,” said Hendrickson. “In architectural coil and extrusion coatings, we have a long and proud history. In 2015, we celebrated 50 years of the Fluropon brand in architectural coil coatings. Fluropon is offered in over 20,000 colors and can be found on signature buildings around the world. We are a trusted partner and were rewarded by our customers with growth in all geographies in 2015. In Wood products, Valspar’s superior service model, innovative technical solutions and inspiring colors make us a valued partner with the world’s leading wood furniture, cabinet and building products brands.”
Paints Segment The Valspar portfolio of brands is available in more than 20,000 points of distribution worldwide. Together with its retail partners, Valspar isdriving sales and building a loyal following for Valspar brands through best-in-class retail service, new product innovation, and world-class marketing and merchandising support, the company reported.
“In North America, a leading consumer publication rated Valspar Reserve the No. 1 “zero VOC” paint in the U.S.; and in the same publication our brands represented four of the top eight ranked paints,” Hendrickson stated. “Strong consumer demand for our products, combined with world-class in-store execution, resulted in solid retail sell-through of Valspar products in North America.”
Internationally, Valspar continued to grow its business through extension of its brands and channels of distribution and new retail partnerships. In the UK, Valspar expanded its partnership with B&Q, both in the store and through increased training and support. In Australia and New Zealand, Valspar reported strong volume growth in its trade paint stores, at its independent retail partners and in the home improvement channel. Valspar’s growth in the China market was driven by new products, product line extensions and significantly increased points of retail distribution.
“Our strong tradition of community involvement plays a significant role in employee satisfaction, and we are proud to provide grants and volunteer opportunities focused on strengthening communities,” said Hendrickson. “As the national paint partner for Habitat for Humanity, Valspar donates paint for every Habitat home built or restored in the United States. To date, Valspar has provided two and a half million gallons of paint, and our employees have logged thousands of hours of volunteer time. In 2015, we signed a new five-year agreement placing Valspar on the path to becoming a $100 million cumulative donor to Habitat for Humanity by 2019.
Valspar reported net sales for fiscal year 2014 grew 10 percent to $4.5 billion. The company’s coatings segment delivered strong results in 2014.
Sales increased 14 percent and adjusted EBIT grew 19 percent. All product lines and regions grew sales and volumes in the year. Highlights in Coatings included the successful integration and performance of the Inver Group acquisition, which increased scale in the large industrial coatings market in Europe. Valspar grew market share in packaging coatings, its industrial product lines benefited from new business wins in domestic and international markets and improving end markets in North America for its wood product line.
In Valspar’s Paints segment, sales increased 7 percent and adjusted EBIT grew 11 percent. Highlighting the year were significant product launches and expanded distribution of Valspar paint in multiple geographies. In North America, Valspar launched the new super premium paint Valspar Reserve, which won Lowe’s Companies “Vendor Innovation of the Year” award.
The company expanded consumer access to Valspar paints in North America through its partnership with Ace Hardware. During 2014, more than 3,250 Ace stores were reset with a Valspar paint studio. In the United Kingdom, the company launched Valspar paints in 350 B&Q Plc home improvement stores. In China, they increased retail distribution and its product portfolio for the affordable housing sector. Valspar reported that sales grew double digits as they continued to gain share in this key market. In Australia and New Zealand, the company launched the Valspar brand of paint and grew market share in its paint stores business and in the home improvement and independent hardware channels.
According to Gary Hendrickson, chairman and CEO of Valspar, the company is committed to innovation. “At Valspar, we believe that technology innovation is integral to our ability to support our customers’ success. Our global R&D network of 1,000 technologists and our investments in innovation have delivered solutions to our customers that have helped them succeed – whether it’s painting a child’s room or coating an ocean shipping container with a more durable finish.
New product launches which further strengthened Valspar’s reputation as an innovation leader in 2014 include: the super premium Valspar Reserve consumer paint, Valpure beverage can inside spray, Valde wet-on-wet powder coatings, new higher performance pipe coatings, auto refinish coatings, which achieved multiple OEM specifications, and new WeatherXL coil coatings.
Valspar believes in giving back and in supporting the communities in which they do business. “We are a proud National Partner with Habitat for Humanity donating over 1.5 million gallons of paint to date,” Hendrickson said. “In 2014, our employees generously devoted their time to numerous Habitat programs, and the Valspar Foundation provided substantial financial support. Also in 2014, our Foundation made an impactful gift creating the Valspar Materials Science and Engineering Lab at the University of Minnesota supporting students in the academic disciplines of science, technology, engineering and mathematics.”
“We continue to make progress toward better environmental management in our facilities and delivering solutions to our customers that enable them to meet their environmental objectives,” he added. “In 2014 we published the inaugural Valspar Sustainability Report, found at www.valspar.com, reporting our progress on key measures of corporate responsibility. Our employees are what make us a great company. Our commitment to training, education and employee development is unwavering. In 2014 a record number of Valspar employees took part in educational and professional development programs.”
Valspar to Acquire Performance Coatings Businesses from Quest Specialty Chemicals
The Valspar Corporation recently reached a definitive agreement to acquire the performance coatings businesses of Quest Specialty Chemicals, Inc., which include automotive refinish and industrial coatings. The transaction, which is expected to close in the company’s third fiscal quarter, is subject to customary closing conditions. Financial terms were not disclosed.
With 2014 sales of approximately $190 million, the businesses to be acquired from Quest include an automotive refinish business along with a smaller industrial products business. Quest Automotive Products formulates, manufactures and distributes a complete line of advanced technology paints, coatings systems, and accessories to professional refinishers under the well-respected brands of Matrix, Prospray, and USC, primarily in North America and Europe. Quest Industrial Products serves both the professional and consumer markets with aerosol spray products and highly-specified coatings for industrial applications under the Patriot, Raabe and Precision Color brands, primarily in North America.
Valspar reported that net sales for fiscal year 2013 grew to more than $4.1 billion. Paints segment results were strong in 2013, with net sales increasing 4 percent to $1.7 billion. The Coatings segment contributed to increased net sales of 2 percent, reaching $2.2 billion in 2013. The U.S. comprises 54 percent of sales, Europe 17 percent, China 11 percent, Australia 8 percent. Latin Amercia 6 percent, ROW 2 percent and Canada 2 percent. Valspar’s Coatings segment had $2.2 billion in net sales. Valspar’s Coatings segment includes four product lines: packaging, general industrial, coil and wood coatings. Valspar’s Paints segment had net sales of $1.7 billion. Valspar’s Paints segment includes consumer paint products in the U.S. Australia and China. The company attributed strong brands, acquisitions and partnerships, innovation and excellent distribution as key drivers for growth in consumer paints. In addition, the Paints segment includes an auto refinish product line. Consumer paint brands include Valspar, Cabot, Devine Color, Guardsman, Huarun, PlastiKote, Solver and Wattyl. Brands for auto refinish include Valspar, De Beer, House of Kolor and .Octoral.
2013 Business Segment Highlights: New business in Valspar’s Coatings segment contributed to increased net sales of 2 percent, reaching $2.2 billion in this segment. The company strengthened its business with the acquisition of Inver, a leading European industrial coatings. manufacturer. Inver expanded Valspar’s geographic presence and increases its distribution capabilities in Europe and beyond. The coil and wood product lines also delivered improved growth as it grew new business in 2013. The general industrial product line faced a challenging market as customer demand declined in several product areas.
Valspar’s Paints segment results were strong in 2013, with net sales increasing 4 percent to $1.7 billion. It increased market share through several strategic initiatives and new business wins. In the company’s annual report, COE Gary Hendrickson attributed continued improvements in the U.S. housing market and investments in its brand as fueling growth at retail partners like Lowe’s. Valspar also launched an enhanced professional painter program at Lowe’s, including expanded product offerings for these customers. Significant new business was gained with the addition of Ace Hardware in 2013. In this partnership, Valspar will supply all of Ace’s private label paint and expect to introduce Valsparbranded paint to over 3,000 Ace Hardware stores. In fiscal 2014, Valspar-branded paint products will be available in nearly 10,000 retail outlets throughout North America. Following a successful testing period this year in B&Q, one of Europe’s leading home improvement retailers, the company distribute Valspar-branded products to 350 B&Q stores in the UK and Ireland in early 2014.
Valspar and Lowe’s have introduced Valspar Reserve Paint + Primer with HydroChroma Technology, super premium paint designed to revolutionize the way consumers paint their homes. Created to deliver durability that stands up to real-life applications, Valspar Reserve resists more staining, scrubbing and fade than any other paint on the market today.
According to Valspar, its Valspar Reserve interior paint is 40 percent more durable with superior stain and scrub resistance, making it ideal for all applications in the home. In addition to increased durability, the exclusive HydroChroma Technology, a water-based colorant system with super-strength pigments, offers a broader range of deeper, more vibrant colors. This technology allows consumers to color match more precisely while delivering exceptional one-coat coverage even over dark colors and bold patterns.
Ace Hardware and Valspar Paint unveiled “Helpful is Beautiful,” a new advertising campaign. Using familiar concepts from the beauty industry, the integrated campaign was created to introduce consumers to the new Paint Studio at Ace.
Launching nationally in over 3,200 locally owned Ace Hardware stores, The Paint Studio was designed around the insight that consumers seek a more style-inspired and personal paint shopping experience rather than a traditional trip to the hardware store. The Paint Studio offers consumers a boutique-style experience with exclusive paint collections from Clark+Kensington, Valspar Optimus and Valspar Aspire displayed in unique drawers and on eye-catching racks with bright lighting and tools to make the color selection process simple. Paired with the helpful service and knowledgeable advice customers can expect from Ace associates, The Paint Studio provides a world-class paint experience right in consumers’ neighborhood hardware stores.
EBITDA before special items at €1.77 billion and thus in line with analyst consensus.
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