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The Sherwin-Williams Co. announced this week that its deal to buy The Valspar Corp. likely won’t close as soon as planned.
When the two U.S. paint companies publicized the purchase agreement in March 2016, they expected the $11.3 billion deal to go through by the end of 2017’s first quarter. But that date has been pushed back as Sherwin-Williams awaits Federal Trade Commission approval for the merger with Valspar.
“We continue to move forward on the divestiture of a single business that we believe will allow us to gain approval from the FTC,” says John G. Morikis, chairman, president and CEO of Sherwin-Williams. “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.”
The paint companies have extended the deadline for closing from March 21 to June 21.
“The extension of the merger agreement to June 21, 2017, is intended to provide sufficient time to complete the Valspar acquisition,” Sherwin-Williams reports.
Sherwin-Williams is headquartered in Cleveland and sells its Sherwin-Williams branded paint through more than 4,100 company-operated locations. The company sells other brands through mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.
Valspar is headquartered in Minneapolis and offers a broad range of coatings for consumers, as well as highly engineered products for the construction, industrial, packaging and transportation markets.
