Sherwin-Williams to buy Valspar
The Sherwin-Williams Company and The Valspar Corporation announced that they have entered into a definitive agreement under which Sherwin-Williams will acquire Valspar for USD 113 per share in an all-cash transaction, or an enterprise value of approximately USD 11.3 billion.
Sherwin-Williams and Valspar have highly complementary paints and coatings offerings and this combination enhances Sherwin-Williams position as a premier global paints and coatings provider. The transaction accelerates Sherwin-Williams growth strategy by expanding its global platform in Asia-Pacific and EMEA, and also adds new capabilities in the packaging and coil segments. The combined company would have pro forma 2015 Revenues and Adjusted EBITDA (including estimated annual synergies) of approximately USD 15.6 billion and USD 2.8 billion, respectively, with approximately 58,000 employees, placing it just ahead of the largest coatings maker, PPG Industries, which had 2015 revenue of USD 15.3 billion.
John G. Morikis, President and Chief Executive Officer of The Sherwin-Williams Company, said, “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”. Sherwin-Williams will continue to be headquartered in Cleveland and we intend to maintain a significant presence in Minneapolis, according to Morikis.
Transaction Details
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, including the expiration or termination of the applicable waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act and regulatory approvals in various other jurisdictions. Both companies believe that the combination will benefit customers and that it will receive all necessary regulatory clearances.
