Sherwin-Williams to Acquire BASF’s Brazilian Architectural Paints Business for $1.15 Billion in All-Cash Transaction
The Sherwin-Williams Company (NYSE: SHW) today announced it has entered into a definitive agreement with BASF Group (ISIN: DE000BASF111) to acquire BASF’s Brazilian architectural paints business (“Suvinil”) for $1.15 billion in an all-cash transaction.
The business is a leading provider of architectural paints in Brazil and had sales of approximately $525 million for the year ended December 31, 2024. The business develops, manufactures and sells a comprehensive portfolio of innovative products under the well-known Suvinil and Glasu! brand names to professional painters, designers, architects, general contractors and consumers across the country. The company employs approximately 1,000 employees and operates two production facilities strategically located in the Northeast and Southeast regions of Brazil.
“Suvinil is a premier provider of architectural paints in Brazil and will accelerate our commitment to provide industry-leading solutions for our customers while delivering profitable above-market growth in the region,” said Heidi G. Petz, Sherwin-Williams Chair, President and Chief Executive Officer. “For more than 60 years, Suvinil has been synonymous with innovation and quality. The business is highly complementary to Sherwin-Williams in Latin America, as the Suvinil brand is well-known and highly-trusted by purchasing influencers and specifiers across the value chain. We are excited to capitalize on the strengths of both companies to further enhance value for customers. Upon the close of the transaction, we are confident that Sherwin-Williams growth mindset and continuous improvement disciplines will enable us to achieve meaningful sales acceleration and cost synergies which we expect will expand Suvinil’s EBITDA margin, excluding one-time integration expenses. We have tremendous respect for the expertise and dedication of the Suvinil team, and we are excited about the opportunities that this combination will provide to customers and employees.”
Sherwin-Williams intends to finance the transaction through a combination of cash on hand, liquidity available under existing facilities and new debt. The purchase price represents a low teens EBITDA multiple following anticipated post transaction synergies net of one-time costs. The transaction is expected to close during the second half of 2025 and is subject to customary closing conditions, including Brazilian regulatory approval. Upon close, Suvinil will become part of the Sherwin-Williams Consumer Brands Group with a joint focus on a seamless experience for customers and opportunities for employees.
ABOUT THE SHERWIN-WILLIAMS COMPANY
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paint, coatings and related products to professional, industrial, commercial, and retail customers. The Company manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson’s® WaterSeal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,000 Company-operated stores and branches, while the Company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.
Via PR Newswire