Sherwin-Williams agrees Valspar deal

Sherwin-Williams Co has agreed to acquire Valspar Corp in an all-cash deal valued at around $9.3 billion.

Sherwin-Williams’ chief executive, John Morikis said, ‘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 the Asia-Pacific and EMEA (Europe, the Middle East and Africa).’

The transaction is expected to close by the end of Q1 2017, subject to approval by Valspar shareholders. The boards of directors of both companies have unanimously approved the deal.

The combined company would have pro forma 2015 revenues of $15.6 billion, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.8 billion, and about 58,000 employees.

The companies estimated annual savings of $280 million within two years.

Sherwin-Williams will remain headquartered in Cleveland. Valspar is based in Minneapolis.