Sherwin-Williams to Acquire Valspar for $11.3 Billion

Companies say they have highly complementary paints and coatings offerings, and transaction results in an exceptional, diversified array of strong brands and technologies.
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Sherwin-Williams will acquire Valspar for approximately $11.3 billion. The transaction has been unanimously approved by the boards of directors of both companies.


Sherwin-Williams officials say that the company and Valspar have highly complementary paints and coatings offerings, and that the transaction results in an exceptional, diversified array of strong brands and technologies, 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 $15.6 billion and $2.8 billion, respectively, with approximately 58,000 employees.


“Valspar is an excellent strategic fit with Sherwin-Williams,” said John Morikis, Sherwin-Williams’ president and chief executive officer. “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.”


Morikis said customers of both companies will benefit from our increased product range, enhanced technology and innovation capabilities, and the transaction's clearly defined cost synergies. He said Sherwin-Williams will continue to be headquartered in Cleveland and intends to maintain a significant presence in Minneapolis.


Gary Hendrickson, Valspar’s chairman and chief executive officer, said his company is pleased to announce the transaction, which delivers immediate and certain cash value to their stockholders.


“We believe that Sherwin-Williams is the right partner to utilize our array of brands and create a premier global coatings company,” he said. “The combination of Sherwin-Williams and Valspar will benefit our customers, employees and other stakeholders. We are confident this transaction will create opportunities to accelerate many of the operating initiatives already underway at Valspar.


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.


For more information, visit sherwin.com.