Coatings giant Sherwin-William plans to acquire Valspar for US$11.3 billion

M&A activities in the global chemical industry are gaining momentum, and a new transaction is announced in the United States
.
On March 20, local time, the American paint giant Sherwin-Williams announced that it would spend $11.
3 billion to acquire Valspar, its counterpart
.

According to the agreement, Sherwin-Williams will trade all-cash at a price of US$113 per share, which is a 41% premium to Valspar’s average price over the 30 trading days as of March 18
.

Sherwin-Williams stated that the two companies have highly complementary products, and the merger will strengthen Sherwin-William's global coatings and paints business and accelerate plans to expand into the Asia-Pacific region, Europe, the Middle East and Africa
.

In 2015, the combined revenue of the two companies was US$15.
6 billion, EBITDA was US$2.
8 billion, and approximately 58,000 employees
.
According to the US "Chemical Weekly", this will surpass PPG Industries to become the world's largest paint manufacturer, whose revenue in 2015 was $15.
3 billion
.

　　The transaction is expected to close in the first quarter of 2017
.
Sherwin-Williams stated that it expects to save approximately US$280 million per year within two years after the merger, and the long-term synergy of savings will reach US$320 million
.

　　According to the merger agreement between the two parties, if there is an unexpected business divestiture, if the total amount of divestiture exceeds Valspar’s 2015 financial report of 650 million U.
S.
dollars, the transaction price will be adjusted to 105 U.
S.
dollars in cash per share; once the business divestiture requirements exceed In the case of $1.
5 billion, Sherwin-William has the right to terminate the transaction
.

　　Sherwin-Williams is headquartered in Cleveland, Ohio, and was founded in 1866
.
It operates in 109 countries around the world and its brands include Sherwin-Williams Paint, Bergeroma, Sayerlack and Inchem
.

　　Valspar was founded in 1806 and is headquartered in Minneapolis, Minnesota, USA
.
Its business fields are very wide, and its products include industrial coatings, architectural coatings, packaging coatings, automotive refinish paints and resins
.