Then, seemingly out of nowhere, the combination of these two companies will further reduce the number of paint companies with PPG, Sherwin-Williams and Masco's Behr as the big competitive players or Benjamin Moore, which is owned by Berkshire Hathaway.
Sherwin anticipated $280 million in synergies from the deal, which Cramer thinks should raise numbers for the acquirer.
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"In my view, the 5 percent decline in its stock price today seems a bit silly given how spectacular this bid is for Sherwin-Williams," Cramer said.
This deal produced three implications for Cramer. First, many thought that Valspar would have made a good short position in a year when the Fed is expected to tighten. Instead, lightning struck and now anyone who is short Valspar is covering like crazy.
Cramer can also tell that the M&A business is starting to gain traction. There seems to be deals every week now, including Columbia Pipeline, Johnson Controls and Starwood.
Third, Cramer thinks there could be more behind this than just a simple bid. Sherwin's competitor, PPG could have been interested, or it could eye RPM instead.
"Valspar is also a reminder of the inherent intrinsic worth of companies in a mundane business," Cramer said. (Tweet This)