Sherwin-Williams Acquires BASF's Brazilian Paint Business Suvinil

Core Insights - Sherwin-Williams has completed the acquisition of BASF's Brazilian architectural paints business, Suvinil, enhancing its long-term growth strategy and presence in Latin America [1][8] Group 1: Acquisition Details - The acquisition of Suvinil aligns with Sherwin-Williams' long-term growth strategy and is expected to strengthen its Consumer Brands Group [2][8] - Suvinil generated approximately $525 million in revenues in 2024 and has a strong market presence in Brazil with innovative products [3] - The purchase price reflects a low-teens EBITDA multiple, and the company anticipates a net-debt-to-EBITDA ratio within the 2.0–2.5x target range by the end of 2025 [4] Group 2: Financial Impact - The acquisition is projected to increase consolidated sales by a low single-digit percentage in Q4 2025 compared to the previous year [4] - The immediate impact on earnings per share is expected to be immaterial due to closing costs and purchase accounting amortization [4] Group 3: Market Performance - Sherwin-Williams' shares have declined by 4.9% over the past year, slightly underperforming the industry average decline of 4.7% [6] - The company currently holds a Zacks Rank of 4 (Sell) [7]