The transaction reportedly enhances Sherwin-Williams’ position as a premier global coatings provider. The combined 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.
“Valspar is an excellent strategic fit with Sherwin-Williams,” said John G. Morikis, president and CEO, 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.
Gary E. Hendrickson, chairman and CEO of Valspar, said, “We are pleased to announce this compelling transaction, 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 premier global coatings company. The combination of Sherwin-Williams and Valspar will benefit our customers, employees and other stakeholders.
The transaction is expected to close by the end of the first quarter of 2017.