Sherwin-Williams Terminates Stock Purchase Agreement for Comex Mexico
CLEVELAND, OHIO – April 4, 2014 – The Sherwin-Williams Company (NYSE: SHW) announced that, on April 3, 2014, it sent notice to the sellers that effective immediately Sherwin-Williams is terminating the amended and restated stock purchase agreement, dated September 16, 2013, to acquire the Mexico business of Consorcio Comex, S.A. de C.V. Under the terms of the agreement, either Sherwin-Williams or the sellers may terminate the agreement in the event that the closing of the acquisition did not occur on or prior to March 31, 2014 and such party is not in material breach of the agreement.
Sherwin-Williams also announced that, on April 3, 2014, it filed a complaint for a declaratory judgment in the Supreme Court of the State of New York, New York County, requesting the court to declare that Sherwin-Williams has used commercially reasonable efforts as required under the stock purchase agreement and has not breached the agreement. On April 1, 2014, the sellers notified Sherwin-Williams of their incorrect belief that Sherwin-Williams breached its obligations to use such commercially reasonable efforts.
Sherwin-Williams will comment further on its first quarter 2014 conference call scheduled for 11:00 a.m. EDT on Thursday, April 17th.
The Sherwin-Williams Company
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers.
This press release contains certain “forward-looking statements,” as defined under U.S. federal securities laws. These forward-looking statements are based upon management’s current expectations, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, that could cause actual results to differ materially from such statements and from the Company’s historical results and experience. These risks, uncertainties and other factors are described from time to time in the Company’s reports filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.