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Sherwin-Williams to Acquire BASF's Brazilian Architectural Paints Business for $1.15 Billion in All-Cash Transaction
SHWSherwin-Williams(SHW) Prnewswire·2025-02-17 13:00

Core Viewpoint - Sherwin-Williams has entered into a definitive agreement to acquire BASF's Brazilian architectural paints business, Suvinil, for 1.15billionincash,enhancingitsmarketpositioninBrazil′spaintindustry[1][3].CompanyOverview−Sherwin−Williamsisagloballeaderinthemanufactureandsaleofpaintandcoatings,withadiverseportfolioofwell−knownbrandsandastrongdistributionnetwork[4].−Thecompanyoperatesover5,000storesandservesvariouscustomersegments,includingprofessional,industrial,andretail[4].AcquisitionDetails−TheacquisitionofSuvinil,whichhadsalesofapproximately1.15 billion in cash, enhancing its market position in Brazil's paint industry [1][3]. Company Overview - Sherwin-Williams is a global leader in the manufacture and sale of paint and coatings, with a diverse portfolio of well-known brands and a strong distribution network [4]. - The company operates over 5,000 stores and serves various customer segments, including professional, industrial, and retail [4]. Acquisition Details - The acquisition of Suvinil, which had sales of approximately 525 million in 2024, is expected to provide significant growth and operational synergies [2][5]. - Suvinil is recognized as a leading provider of architectural paints in Brazil, known for its innovative products and strong brand reputation [2][3]. - The transaction is anticipated to close in the second half of 2025, pending regulatory approval in Brazil [3][5]. Strategic Implications - The acquisition is expected to accelerate Sherwin-Williams' growth in the Brazilian market, leveraging Suvinil's established brand and distribution channels [3][5]. - The purchase price reflects a low teens EBITDA multiple, indicating a favorable valuation based on expected post-transaction synergies [3][5]. - Sherwin-Williams plans to finance the acquisition through cash on hand, existing liquidity, and new debt, maintaining a net-debt to EBITDA ratio within the targeted range of 2.0 to 2.5 times [5].