Zinger Key Points
- Sherwin-Williams to acquire Suvinil for $1.15 billion.
- Deal expected to close in second half of 2025.
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Paints and coatings maker Sherwin-Williams Company SHW has reached an agreement to purchase BASF Group‘s BASFY Brazilian architectural paints division, Suvinil, for $1.15 billion in an all-cash deal.
The acquisition is expected to strengthen and accelerate Sherwin-Williams’ growth prospects in Brazil by offering a broad product selection and extensive distribution through paint retailers and regional home centers.
Suvinil generated about $525 million in sales in 2024. The company offers a broad range of products under its Suvinil and Glasu! brands, serving a diverse customer base that includes professional painters, designers, architects, and contractors.
With approximately 1,000 employees, Suvinil operates two manufacturing plants situated in the Northeast and Southeast regions of Brazil.
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“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,” said Chair, President and CEO Heidi G. Petz.
The transaction is expected to be finalized in the latter half of 2025, contingent upon regulatory approval.
Sherwin-Williams intends to finance the purchase using a combination of cash reserves, accessible liquidity, and newly issued debt.
The deal is expected to involve an EBITDA multiple in the low teens, accounting for projected synergies and one-time expenses after the transaction.
Following the financing, Sherwin-Williams’ net-debt to EBITDA ratio is expected to stay within the target range of 2.0 to 2.5 times. Once completed, Suvinil will become part of the Sherwin-Williams Consumer Brands Group.
The company held $210.4 million in cash and equivalents as of December 31, 2024.
Price Action: SHW shares closed lower by 1.18% at $356.86 on Friday.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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