Axalta Completed the Acquisition of Spencer Coatings

Axalta (AXTA) announced its move to acquire United Kingdom–based Spencer Coatings in May. Axalta completed the acquisition.

Peter Neil - Author

Jun. 13 2017, Updated 9:10 a.m. ET

uploads///Part  AXTA

Axalta completed the Spencer Coatings acquisition

Axalta (AXTA) announced its move to acquire United Kingdom–based Spencer Coatings in May. Axalta completed the acquisition of Spencer Coatings. The company will help Axalta expand its regional presence in the United Kingdom. It should be noted that Spencer Coatings specializes in manufacturing high-performance industrial coatings focused on serving the heavy duty equipment, general industrial, oil and gas, and glass coating segments.

Article continues below advertisement
Article continues below advertisement

Spencer Coatings will be part of Axalta’s Performance Coatings, which will cater to industrial customers. The revenue from the acquisition might be reflected in Axalta’s 2Q17 earnings. As a result of the acquisition, Axalta’s EMEA share might increase. In 2016, the EMEA’s revenue stood at $1.45 billion, which was 35.7% of Axalta’s total revenue.

How Axalta performed last week

As of June 9, 2017, Axalta closed at $33.59 and rose 1.8% for the week ending June 9, 2017. Axalta outperformed the iShares US Basic Materials (IYM), which holds 1.2% in Axalta as of May 26, 2017. IYM rose 1.4% for the week and closed at $90.94. Axalta outperformed its peers PPG Industries (PPG) and RPM International (RPM), which returned -0.44 and -0.60%. However, Sherwin-Williams (SHW) outperformed Axalta with a return of 2.20%.

Axalta closed 19% above its 100-day moving average price of $28.22, which indicates an upward trend in the stock. The 14-day RSI (relative strength index) of 70 indicates that the stock has temporarily moved into the overbought zone. RSI levels of 70 and above suggest that a stock is overbought, while RSI levels of 30 and below indicate that a stock is oversold. Analysts expect Axalta’s 12-month target price to be $34.18, which isn’t far from its current closing price.


Latest Sherwin-Williams Co News and Updates

    Opt-out of personalized ads

    © Copyright 2024 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.