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US: Sherwin-Williams buying rival Valspar for $9 billion

By  |  March 20, 2016

Sherwin-Williams, which has long claimed to “cover the Earth” with its paints, is buying rival Valspar for about $9 billion in a move that it says will expand its reach in Asia and Europe.

Sherwin-Williams said Sunday that it is paying $113 a share in cash, a 35 percent premium to the closing price of Valspar’s stock Friday. It valued the deal at $11.3 billion including the assumption of about $2 billion in Valspar debt.

The combined company would employ 58,000 people and would have had revenue of $15.6 billion last year.

John Morikis, president and CEO of Sherwin-Williams Co., said the deal will enable the companies to save $280 million annually within two years by cutting administrative expenses and raw-material costs. The savings should reach $320 million in the long-run, he said.

Full Content: The Wall Street Journal

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