Sherwin-Williams Completes Acquisition of Valspar

The Sherwin-Williams Company has completed its acquisition of The Valspar Corporation. Under the terms of the merger agreement, Valspar shareholders will receive $113 per share in cash. In connection with completion of the transaction, Valspar common stock has ceased trading and will be delisted from the New York Stock Exchange.

“The acquisition of Valspar accelerates Sherwin-Williams’ global growth strategy and creates the global leader in paints and coatings. The combination of these two companies creates a world class brand portfolio, expanded product range, premier technology and innovation platforms, and an extensive global footprint. These enhanced capabilities will benefit our customers and create sustainable long-term value for our shareholders,” said John G. Morikis, chairman, president, and chief executive officer of Sherwin-Williams

Sherwin-Williams expects to achieve $320 million of annual run-rate synergies in the areas of sourcing, SG&A and process and efficiency savings, within three years. The company also expects this transaction to be immediately accretive to earnings (excluding one-time costs) and to meaningfully increase the company’s operating cash flow. Sherwin-Williams will announce financial results for the second quarter, which ended June 30, 2017, on July 20, 2017, and will also provide its outlook on the combined company for the third quarter and full year 2017.