Paint company Sherwin-Williams is buying rival Valspar for USD 11.3 billion in a move that it says will expand its reach in Asia and Europe.
Sherwin-Williams says it is paying USD 113 per share in cash, a 35 percent premium to the closing price of Valspar's stock Friday. The combined company would employ 58,000 people and would have had revenue of USD 15.6 billion last year.
John Morikis, president and CEO of Sherwin-Williams, says the deal will enable the companies to save $280 million annually within two years by cutting sales, administrative and other expenses.
He says the savings should reach $320 million in the long-run. Sherwin-Williams will remain headquartered in Cleveland.
The acquisition is subject to antitrust review and is expected to close by the end of the first quarter in 2017.
