- Adds a leading producer of architectural paints in Brazil and
the
highly-recognized Suvinil brand to Sherwin-Williams
portfolio
- Expands and accelerates existing profitable growth opportunity in Brazil with comprehensive
product
offering and extensive distribution through paint stores
and regional home centers
- Annual sales of approximately $525 million; significant growth and operational synergy
opportunities
- Sherwin-Williams resulting net-debt to EBITDA ratio following financing to remain
in
targeted range of 2.0 to 2.5 times
- Expected to close in the second half of 2025 subject to customary closing
conditions,
including Brazilian regulatory approval
CLEVELAND, Feb. 17, 2025
/PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) today announced it has entered into a definitive
agreement with BASF Group (ISIN: DE000BASF111) to acquire BASF's Brazilian architectural paints business
("Suvinil") for $1.15 billion in an all-cash transaction.
The business is a leading provider of architectural paints in Brazil and had sales of approximately $525
million for the year ended December 31, 2024. The business develops, manufactures and sells a comprehensive
portfolio of innovative products under the well-known Suvinil and Glasu! brand names to professional
painters, designers, architects, general contractors and consumers across the country. The company employs
approximately 1,000 employees and operates two production facilities strategically located in the Northeast
and Southeast regions of Brazil.
"Suvinil is a premier provider of architectural paints in Brazil and will accelerate our commitment to
provide industry-leading solutions for our customers while delivering profitable above-market growth in the
region," said Heidi G. Petz, Sherwin-Williams Chair, President and Chief Executive Officer. "For more than
60 years, Suvinil has been synonymous with innovation and quality. The business is highly complementary to
Sherwin-Williams in Latin America, as the Suvinil brand is well-known and highly-trusted by purchasing
influencers and specifiers across the value chain. We are excited to capitalize on the strengths of both
companies to further enhance value for customers. Upon the close of the transaction, we are confident that
Sherwin-Williams growth mindset and continuous improvement disciplines will enable us to achieve meaningful
sales acceleration and cost synergies which we expect will expand Suvinil's EBITDA margin, excluding
one-time integration expenses. We have tremendous respect for the expertise and dedication of the Suvinil
team, and we are excited about the opportunities that this combination will provide to customers and
employees."
"The signing marks an important step in unlocking the value of our standalone businesses, and I am delighted
that we have made such rapid progress in finding a new home for Suvinil," said Anup Kothari, member of the
Board of Executive Directors of BASF SE and responsible for the Coatings division. "We are convinced that
the decorative paints business will continue to thrive as part of Sherwin-Williams. We are deeply grateful
to our employees for their hard work and dedication, which have made Suvinil the most recognized brand for
decorative paints in Brazil."
Sherwin-Williams intends to finance the transaction through a combination of cash on hand, liquidity
available under existing facilities and new debt. The purchase price represents a low teens EBITDA multiple
following anticipated post transaction synergies net of one-time costs. The transaction is expected
to close during the second half of 2025 and is subject to customary closing conditions, including Brazilian
regulatory approval. Upon close, Suvinil will become part of the Sherwin-Williams Consumer Brands Group with
a joint focus on a seamless experience for customers and opportunities for employees.
ABOUT THE SHERWIN-WILLIAMS COMPANY
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development,
distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and
retail customers. The Company manufactures products under well-known brands such as
Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch
Boy®, Krylon®, Minwax®, Thompson's® WaterSeal®,
Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams®
branded products are sold exclusively through a chain of more than 5,000 Company-operated stores and
branches, while the Company's other brands are sold through leading mass merchandisers, home centers,
independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The
Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the
construction, industrial, packaging and transportation markets in more than 120 countries around the world.
Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit
www.sherwin.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements contained in this press release constitute "forward-looking statements" within the meaning
of federal securities laws. These forward-looking statements are based upon management's current
expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions with
respect to Sherwin-Williams, the business to be acquired, the announced transaction, and other matters, and
include discussions of strategy, business, operating and financial projections, guidance and estimates
(including their underlying assumptions), statements regarding plans, objectives, expectations or
consequences of the announced transaction, and statements about future performance, operations, products and
services. Any statement that is not historical in nature is a forward-looking statement and may be
identified by the use of words and phrases such as "anticipate," "aspire," "believe," "could," "estimate,"
"expect," "goal," "intend," "may," "plan," "potential," "project," "seek," "should," "strive," "target,"
"will," or "would," or the negative thereof or comparable terminology.
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 our
control, that could cause actual results to differ materially from such statements and from our historical
results, performance and experience. These risks, uncertainties and other factors include such things as:
the possibility that the closing conditions to the announced transaction may not be satisfied or waived,
including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval;
delay in closing the transaction or the possibility of non-consummation of the transaction; the potential
for regulatory authorities to require divestitures in connection with the announced transaction; general
business and economic conditions in the United States and worldwide; inflation rates, interest rates,
unemployment rates, labor costs, healthcare costs, recessionary conditions, geopolitical conditions,
terrorist activity, armed conflicts and wars, public health crises, pandemics, outbreaks of disease, and
supply chain disruptions; shifts in consumer behavior driven by economic downturns in cyclical segments of
the economy; shortages and increases in the cost of raw materials and energy; catastrophic events, adverse
weather conditions and natural disasters (including those that may be related to climate change); the loss
of any of our largest customers; increased competition or failure to keep pace with developments in key
competitive areas of our business; cybersecurity incidents and other disruptions to our information
technology systems; our ability to attract, retain, develop and progress a qualified global workforce; our
ability to successfully integrate past and future acquisitions into our existing operations, as well as the
performance of the businesses acquired; risks and uncertainties associated with our expansion into and our
operations in Asia, Europe, South America and other foreign markets; policy changes affecting international
trade, including import/export restrictions and tariffs; our ability to achieve our strategies or
expectations relating to sustainability considerations, including as a result of evolving legal, regulatory,
and other standards, processes and assumptions, the pace of scientific and technological developments,
increased costs, the availability of requisite suppliers, energy sources, or financing, and changes in
carbon markets; damage to our business, reputation, image or brands due to negative publicity; the
infringement or loss of our intellectual property rights or the theft or unauthorized use of our trade
secrets or other confidential business information; a weakening of global credit markets or changes to our
credit ratings; our ability to generate cash to service our indebtedness; fluctuations in foreign currency
exchange rates and changing monetary policies; our ability to comply with a variety of complex U.S. and
non-U.S. laws, rules and regulations; increases in tax rates, or changes in tax laws or regulations; our
ability to comply with numerous, complex and increasingly stringent domestic and foreign health, safety and
environmental (including related to climate change and chemical management) laws, regulations and
requirements; our liability related to environmental investigation and remediation activities at some of our
currently- and formerly-owned sites; the nature, cost, quantity and outcome of pending and future
litigation, including lead pigment and lead-based paint litigation; and the other risk factors discussed in
Part 1, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and our other
reports filed with the SEC.
Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and
other factors that may affect future results and that the above list should not be considered a complete
list. Any forward-looking statement speaks only as of the date on which such statement is made, and we
undertake no obligation to update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise, except as otherwise required by law.
INVESTOR RELATIONS CONTACTS:
Jim Jaye
Senior
Vice President, Investor Relations & Corporate
Communications
Direct: 216.515.8682
investor.relations@sherwin.com
Eric Swanson
Vice President, Investor Relations
Direct:
216.566.2766
investor.relations@sherwin.com
MEDIA CONTACT:
Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com
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