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Sherwin-Williams Buys Valspar

Mar 28, 2016 BodyShop, ColiisionRepair, AutoPaint,


The Sherwin-Williams Company and the Valspar Corporation have announced that they have entered into a definitive agreement under which Sherwin-Williams will acquire Valspar for $113 per share in an all-cash transaction, or an enterprise value of approximately $11.3 billion. 

The companies described themselves as having highly complementary paints and coatings offerings and that the combination will enhance Sherwin-Williams' position as a premier global paints and coatings provider. 

According to John Morikis, President and Chief Executive Officer of The Sherwin-Williams Company: “Valspar is an excellent strategic fit with Sherwin-Williams. The combination expands our brand portfolio and customer relationships in North America, significantly strengthens our Global Finishes business, and extends our capabilities into new geographies and applications, including a scale platform to grow in Asia-Pacific and EMEA. Customers of both companies will benefit from our increased product range, enhanced technology and innovation capabilities, and the transaction’s clearly defined cost synergies.”

The transaction is expected to close by the end of Q1 calendar year 2017, and is subject to the approval of Valspar shareholders and customary closing conditions. Under the terms of the merger agreement, in what both companies believe to be the unlikely event that divestitures are required of businesses totaling more than $650 million of Valspar’s 2015 revenues, the transaction price would be adjusted to $105 in cash per Valspar share.  Sherwin-Williams would have the right to terminate the transaction in the event that required divestitures exceed $1.5 billion in 2015 revenues. 

The combined company would remain based in Sherwin-Williams’s headquarters in Cleveland, though it would keep a “significant presence” in Minneapolis, Valspar’s home. The deal is expected to close by next March, pending approval from Valspar’s shareholders and government regulators.

The combined company is expected to have 58,000 employees and accelerate Sherwin-Williams' growth strategy by expanding its platform overseas, particularly in Asia.





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