United States. Sherwin-Williams announced on June 1 that it has completed the acquisition of The Valspar Corporation. Under the terms of the merger agreement, Valspar shareholders will receive $113 per share in cash. In connection with the completion of the transaction, Valspar's common stock ceased operations prior to the opening of the market and will be withdrawn from the New York Stock Exchange.
John G. Morikis, President and Chief Executive Officer of Sherwin-Williams, said, "We are pleased to complete this transaction and would like to officially welcome our new colleagues at Valspar and the tremendous talent they bring to Sherwin-Williams The acquisition of Valspar accelerates Sherwin-Williams' global growth strategy. The combination of these two companies creates a portfolio of world-class brands, broad product range, world-class technology and innovation platforms and a broad global footprint These enhanced capabilities will benefit our customers and create long-term sustainable value for our shareholders."
Headquartered in Cleveland, Ohio, the combined company generated 2016 pro forma revenue of $15.8 billion and employs approximately 60,000 associates worldwide. It has an outstanding position in the architectural painting market in North America, South America, China, Australia and the United Kingdom. In industrial coatings, the combined company is a world leader in the market for packaging coatings, coil coatings, general industrial coatings and industrial wood coatings.
On May 2, 2017, Sherwin-Williams filed a Current Report on Form 8-K containing unaudited 2016 pro forma financial statements reflecting the acquisition of Valspar.
As previously reported, Sherwin-Williams expects to achieve US$320 million of annual synergies in the areas of sourcing, SG&A and process and efficiency savings within three years. The company also expects this transaction to immediately increase revenue (excluding extraordinary costs) and significantly increase the company's operating cash flow.
