Essential reading for retailers and suppliers in the home improvement market

Sherwin-Williams to acquire Valspar in $9.3bn deal

Published: 21 March 2016

The Sherwin-Williams paint company has agreed to purchase rival American paint supplier Valspar in a cash deal valued at around $9.3bn.

Sherwin-Williams to acquire Valspar in $9.3bn deal

Sherwin-Williams said it would pay $113 a share, or a premium of about 41% to Valspar's volume weighted average price or the 30 days up to and including March 18.

The company added that the acquisition "enhances Sherwin-Williams' position as a premier global paints and coatings provider", adding: "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.

Sherwin-Williams ceo John G. Morikis 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.

"Customers of both companies will benefit from our increased product range, enhanced technology and innovation capabilities, and the transaction's clearly defined cost synergies. We have tremendous respect for the expertise and dedication of the Valspar team and we are excited about the opportunities that this combination will provide to both companies' employees. Sherwin-Williams will continue to be headquartered in Cleveland and we intend to maintain a significant presence in Minneapolis."

Valspar chairmain and ceo Gary E. Hendrickson added: "We are pleased to announce this compelling transaction, which delivers immediate and certain cash value to our stockholders. We believe that Sherwin-Williams is the right partner to utilize our array of brands and create a premier global coatings company.

"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.

"We look forward to positioning Valspar to enter its next phase of growth and success and to working closely with Sherwin-Williams to seamlessly close this transaction. Together we will continue to build on the solid momentum our team has worked so hard to create."

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


Has the trend for more outdoor heating and lighting products helped extend the window for selling outdoor lines?



Latest reader comments

re: £1billion VAT bombshell for building supplies

VAT Bombshell
I do not understand the problem?You just need to organise VAT deferment facilities with your Bank, the same as non-EU country imports now....

re: B&Q and Valspar partnership to "transform the paint market in the UK"

Muriel
Have to agree that this paint is expensive and poor .Went to Valspar for a colour match which granted is correct .But the eggshell wood ...

re: Tesco plans alliance with French giant Carrefour

Glenn Phillips
Does this mean Carrefour will return to our shores again? i do hope so, sadley missed by many...

re: B&Q overhauls kitchen and bathroom sales process

H D Fawx
B&Q's latest overhaul to its design and installation service is all about profit for shareholders. I'm not fooled into thinking your ...

re: Acana tackles carpet moths with carpet & fabric moth killer and freshener

Stephanie Ferrante
Hello, could someone from customer service call me - I am located in the US and we have a moth/ carpet issue. I am going to purchase this ...

Most read stories

Blog and Comment

Dawn of a new age in customer service

Customer service used to be about answering telephones and responding to written requests, but our fast paced, social media driven society ... Read More >>