Sherwin-Williams to Buy Valspar for $9.3 Billion
Deal would give the company more bulk in its battle with paint rivals PPG and AkzoNobel
Sherwin-Williams, based in Cleveland, Ohio, has a much larger market value than Valspar. PHOTO: BLOOMBERG NEWS
Sherwin-Williams Co. has agreed to buy Valspar Corp. for more than $9 billion, a deal that would help the paint maker get better access to big-box retailers like Lowe’s, where Valspar is a big seller, and expand abroad.
Sherwin-Williams will pay $113 a share in cash, a 35% premium to Valspar’s closing price on Friday. Based on a fully diluted share count, which typically includes instruments that can be converted into stock, the deal is worth about $9.3 billion.
Valspar shareholders already have made out well, with the stock more than doubling in the past five years, far outstripping the S&P 500 index.
The Wall Street Journal reported earlier Sunday that the companies were in talks to combine.
The purchase would give Sherwin another brand and more access to do-it-yourself painters, who tend to buy their supplies at big retailers rather than at the contractor-oriented stores owned by Sherwin.
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