 "Sherwin-Williams buys Valspar for $ 11.3 bn")
The US-based coatings major Sherwin-Williams Company on March 20, 2016 entered into a definitive agreement to acquire Valspar for $ 113 per share in an all-cash transaction, or an enterprise value of approximately $ 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 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. 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,” said John Morikis, president and chief executive officer of Sherwin-Williams Company.
The transaction is expected to close by the end of Q1 calendar year 2017.
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 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. 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,” said John Morikis, president and chief executive officer of Sherwin-Williams Company.
The transaction is expected to close by the end of Q1 calendar year 2017.