Sherwin-Williams acquires Valspar $9.3 billion in cash

Sherwin-Williams acquires Valspar for $9.3 billion in cash

6:07 AM, 22nd March 2016
Sherwin-Williams acquires Valspar for $9.3 billion in cash

CLEVELAND & MINNEAPOLIS, US: The Sherwin-Williams Company and The Valspar Corporation have agreed for Sherwin-Williams to acquire Valspar for $113 per share in an all-cash transaction, or approx $9.3 billion. The $113 share price represents a premium of approximately 41 percent to Valspar’s volume weighted average price for the 30 days.

Sherwin-Williams said the deal had “an enterprise value of about $11.3 billion.” The value includes debt and equity.

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 proforma 2015 revenues and adjusted EBITDA 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 CEO of Sherwin-Williams.

“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,” said Gary Hendrickson, chairman and CEO, Valspar.

Citi and JP Morgan Securities LLC acted as financial advisors to Sherwin-Williams. Jones Day and Weil, Gotshal & Manges LLP are acting as legal advisors to Sherwin-Williams. Goldman Sachs and BofA Merrill Lynch are acting as financial advisors to Valspar and Wachtell, Lipton, Rosen & Katz is acting as its legal advisor.

© Worldofchemicals News


Read more on the second biggest acquisition in chemical industry:

China to improve domestic food production with $43-bn bid for Syngenta

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