The Sherwin-Williams Company reported $11.33 billion in et sales for 2015. Minus the sale of painting tools and equipment in the company’s Paint Store Group, Coatings
World estimates the company’s paint and coatings sales to be approximately $10.24 billion.
Its Paints Stores Group is the leading operator of specialty paint
stores in North America, with more than 4,000 stores located
throughout the U.S., Canada and the Caribbean region and rep-
resents 63. 6 percent of total sales. Its Paint Stores Group includes
Sherwin-Williams branded paints and stains. Major brands include
Sherwin-Williams, MAB, ProMar and SuperPaint. The Consumer
Group comprises 13. 9 percent of sales and sells branded, private
label and licensed brand paints, stains, varnishes, industrial prod-
ucts, wood finishing products, aerosols, caulks and adhesives. Major
brands include Dutch Boy, Krylon, Minwax, Thompson’s Wa-
terSeal, Pratt and Lambert, Martin Senour, Ronseal and Duraseal.
The company’s Global Finishes Group comprises 16. 9 percent of
total sales and manufactures and sells a wide range of OEM prod-
uct finishes, protective and marine coatings and automotive finishes
to a customer base in 120 countries. Key brands include Sherwin-
Williams, Lazzuril, Excelo and Baco. The Latin America Coatings
Group encompasses 5. 6 percent of total sales. It manufactures a
wide range of architectural paints and industrial coatings through-
out Latin America.
The Sherwin-Williams Company to Acquire Valspar for $11.3 Billion
The Sherwin-Williams Company and The Valspar Corporation have entered into a definitive agreement under which Sherwin-Williams
will acquire Valspar for $11.3 billion.
Sherwin-Williams and Valspar have com-
plementary paints and coatings offerings and
this combination enhances Sherwin-Williams
position as a premier global paints and coat-
ings provider. The transaction results in a
diversified array of brands and technologies,
accelerates Sherwin-Williams growth strategy
by expanding its global platform in Asia-Pa-
cific and EMEA, and also adds new capabilities
in the packaging and coil segments. The com-
bined 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.
John G. Morikis, president and chief execu-
tive officer of The Sherwin-Williams Company,
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 capa-
bilities into new geographies and applications,
including a scale platform to grow in Asia-Pa-
cific and EMEA. Customers of both companies
will benefit from our increased product range,
enhanced technology and innovation capabili-
ties, 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 opportuni-
ties 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 pres-
ence in Minneapolis.”
Morikis added: “Sherwin-Williams has a
long track record of successfully integrating
acquisitions. We are highly confident in the
industrial logic of the transaction and, once
closed, our ability to achieve $280 million of
estimated annual synergies in the areas of
sourcing, SG&A and process and efficiency
savings within two years and our long-term
annual synergy target of $320 million. We ex-
pect this transaction to be immediately accre-
tive excluding one-time costs and meaningfully
enhance our cash flow generation profile.”
Gary E. Hendrickson, chairman and chief
executive officer of Valspar, said, “We are
pleased to announce this compelling trans-
action, 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 pre-
mier global coatings company. The combi-
nation of Sherwin-Williams and Valspar will
benefit our customers, employees and other
stakeholders. We are confident this transac-
tion 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.”
The transaction is expected to close by the
end of Q1 calendar year 2017, and is subject
to the approval of Valspar shareholders and
03Sherwin Williams Cleveland, Ohio/USA www.sherwin-williams.com
PUBLIC COMPANY
YEAR ESTABLISHED: 1866
REVENUE: $10.24 billion s (2014: $6.370 billion)
(Note: Sherwin-Williams reported total revenue of
$11,339,304 billon for fiscal 2015. However, for purposes of
this report, sales of painting tools and equipment in the Paint
Stores Group are not reported as part of coatings revenue.
The above is Coatings World’s estimate.)
MARKETS SERVED
• Architectural coatings • Industrial coatings • Protective
and marine coatings • OEM product finishes
• Wood finishes • Aerospace coatings
KEY EXECUTIVES
Christopher Connor, executive chairman; John Morikis,
president and CEO; Thomas P. Gilligan, senior VP, human
resources; Sean Hennessy, senior VP, finance and CFO
