CLEVELAND, Feb. 18, 2021 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) announced it has signed a purchase agreement with global coatings company Hempel A/S to divest Wattyl, an Australian and New Zealand manufacturer and seller of architectural and protective paint and coatings with annual revenue of approximately $200 million USD and 750 employees. The transaction is expected to close during the first quarter of 2021, subject to customary closing conditions.
"Today's announcement of our intent to divest Wattyl aligns with our ongoing process to evaluate all aspects of our portfolio, including brands, product lines, customer programs and businesses, for their ability to meet our performance criteria and for their long-term strategic fit," said John G. Morikis, Sherwin-Williams Chairman and Chief Executive Officer. "While we've driven significant improvement in the Wattyl business, we believe Company resources can be better deployed to other opportunities offering greater growth, more meaningful scale, and higher returns and cash flow. We thank the employees of Wattyl for their contributions to Sherwin-Williams."
The Wattyl business became part of Sherwin-Williams through the 2017 acquisition of The Valspar Corporation. The business was previously reported in Sherwin-Williams Consumer Brands Group.
Deloitte Corporate Finance Australia served as M&A adviser to Sherwin-Williams and Wattyl on the transaction.
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® Water Seal®, Cabot®, and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 4,900 Company-operated stores and facilities, 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.
Cautionary Statement Regarding Forward-Looking Information
This press release contains certain "forward-looking statements," as defined under U.S. federal securities laws, with respect to the transaction. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "could," "plan," "goal," "potential," "seek," "intend" or "anticipate" or the negative thereof or comparable terminology. These forward-looking statements are based upon management's current expectations, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements. These risks, uncertainties and other factors include such things as: delay in closing the transaction or the possibility of non-consummation of the transaction; the occurrence of any event that could give rise to termination of the purchase agreement; general business and economic conditions; the duration, severity and scope of the COVID-19 pandemic, which may exacerbate one or more of the aforementioned and/or other risks, uncertainties and factors more fully described in the Company's reports filed with the Securities and Exchange Commission (SEC); and other risks, uncertainties and factors described from time to time in the Company's reports filed with the SEC. The foregoing should not be considered a complete list. Any forward-looking statement speaks only as of the date such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement.
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SOURCE The Sherwin-Williams Company