Sherwin-Williams and Valspar Merger Delayed
Completion of the merger of US paint companies Sherwin-Williams and Valspar has been postponed from Mar. 21 to Jun. 21, 2107 because of delays related to the sale of one of Sherwin-William’s businesses that is required before regulators can clear the deal.
Sherwin-Williams has not identified the business it is trying to sell. However, the Cleveland, Ohio-based group confirmed that the required divestment will not impact the price of $113 per share that it has agreed to pay. Under the original agreement, if regulators required Sherwin-Williams to sell assets totaling more than $650 million in annual revenues, the purchase price for Valspar would fall to $105 per share.
John Morikis, chairman, president and CEO of Sherwin-Williams, said the company is in discussions with a number of prospective buyers and it continues to move forward on the divestment of a single business that it believes would allow the Federal Trade Commission to grant approval. He commented: “We remain confident in our ability to complete the divestiture at a fair price and we look forward to unlocking the value of the combined business when the Valspar acquisition closes”.
Sherwin-Williams said the extension to June should provide enough time to complete both transactions. It expects to provide more definitive timing during its first-quarter earnings conference call scheduled for Apr. 20.
The Valspar deal is reported to be the largest acquisition in Sherwin-William’s 150-year history.
