Sika Sells German Coatings to Sherwin-Williams
Swiss specialty chemicals company Sika has agreed to sell its European industrial coatings business to US paints and coatings group Sherwin-Williams for an undisclosed sum.
The business based in Vaihingen, Germany, sells anticorrosive and fire protective coatings to specialized customer groups, such as those in steel construction, and mainly located in Germany, Switzerland, Austria and Poland. These customer segments, explained Sika, offer little synergy potential with the group and the business has remained a specialized niche. It had sales of approximately 75 million Swiss francs in 2020.
The transaction is expected to close in the beginning of 2022. Sika said it believes Sherwin-Williams is the “right long-term owner” for the business, adding that “industrial coatings is a core competence for Sherwin-Williams and the acquired business an important strategic opportunity to drive growth and support the expansion of its market position in Europe.”
"This transaction fits our strategy of acquiring complementary, high-quality, differentiated businesses that add to our profitable growth momentum," said Sherwin-Williams chairman, president and CEO John Morikis. "The business brings us scale, unique technology, a strong sales and marketing team, technical service capabilities, strategically located manufacturing, and leading specification and approval positions, all of which we can leverage further throughout Europe and other regions across the world. Additionally, synergy opportunities give us great confidence in accelerating the already strong financial performance of the business."
The acquired business, along with roughly 130 Sika employees, will become part of the Sherwin-Williams’ Performance Coatings Group segment.
Author: Elaine Burridge, Freelance Journalist
