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Sherwin-Williams, Valspar Announce Merger Valued Over $9 Billion

Image: Sherwin-Williams, Valspar Announce Merger Valued Over $9 Billion
A general view of atmosphere at the HGTV HOME by Sherwin-Williams and Lowe's NYC Press Event on May 13, 2015 in New York City. (Bryan Bedder/Getty Images)

By    |   Monday, 21 Mar 2016 10:30 AM

Sherwin-Williams plans to purchase rival Valspar Corp. for more than $9 billion, in hopes that the paint-making giant can get improved access to home retailers like Lowe's and grow overseas.

The company said in a statement that the deal has "an enterprise value of approximately $11.3 billion," but The Wall Street Journal stated that "based on a fully diluted share count, which typically includes instruments that can be converted into stock, the deal is worth about $9.3 billion." Sherwin-Williams will buy Valspar at $113 per share in cash.

"Valspar is an excellent strategic fit with Sherwin-Williams," John G. Morikis, president and chief executive of Sherwin-Williams, said in a statement on Sunday.

"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 (Europe, Middle East and Africa markets). 

"Customers of both companies will benefit from our increased product range, enhanced technology and innovation capabilities, 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 opportunities that this combination will provide to both companies' employees," the official company statement continued.

Sherwin-Williams said that Cleveland will continue to be the home of its headquarters, but will continue to "maintain a significant presence in Minneapolis," where Valspar is headquartered. Valspar has been around since 1806 and has more than 11,000 employees in over 25 countries, according to its website.

"We are pleased to announce this compelling transaction, which delivers immediate and certain cash value to our stockholders," Gary E. Hendrickson, chairman and chief executive of Valspar, said in a statement posted on both of the company's websites.

"We believe that Sherwin-Williams is the right partner to utilize our array of brands and create a premier global coatings company. The combination of Sherwin-Williams and Valspar will benefit our customers, employees and other stakeholders. We are confident this transaction will create opportunities to accelerate many of the operating initiatives already underway at Valspar."

Reuters stated that Sherwin-Williams makes products under the Sherwin-Williams, Dutch Boy, Krylon, Minwax, Thompson's Water Seal and other brands, while Valspar sells consumer paints under Valspar, Cabot Stain, Devine Color, and other brands.

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Sherwin-Williams plans to purchase rival Valspar Corp. for more than $9 billion, in hopes that the paint-making giant can get improved access to home retailers like Lowe's and grow overseas.
sherwin-williams, valspar
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2016-30-21
Monday, 21 Mar 2016 10:30 AM
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