United States.
Sherwin-Williams and Valspar Corp. announced that they have entered into a definitive agreement under which Sherwin-Williams will acquire Valspar for $113 per share, in a transaction with an enterprise value of approximately $11.3 million. The transaction has been unanimously approved by the boards of directors of both companies.
Sherwin-Williams and Valspar have highly complementary paints and coating offerings, and this combination enhances Sherwin-Williams' position as a global paint and coating supplier.
Transaction results across a diversified range of strong brands and technologies accelerate Sherwin-Williams' growth strategy by expanding its global platform in Asia-Pacific and EMEA, and also adds new capabilities in the packaging and coil segments.
The combined company would have 2015 Ebitda Revenue and Adjustments (including estimated annual synergies) of approximately $15.6 billion and $2.8 billion, respectively, with approximately 58,000 employees.
The transaction is expected to close by the end of the first quarter of 2017. It is subject to Valspar shareholder approval and customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvement Act, and regulatory approvals in other jurisdictions. Both companies believe the combination will benefit customers and that it will receive all necessary regulatory clearances.
Sherwin-Williams intends to fund the transaction through a combination of cash, liquidity available under existing facilities and new debt. Sherwin-Williams has secured funding from Citigroup Global Markets Inc. in support of the transaction and has committed to maintaining its current dividend and rapid deleveraging using significant free cash flow.
