Sherwin-Williams completes acquisition of BASF’s Brazilian paint business

CLEVELAND - The Sherwin-Williams Company (NYSE:SHW), a prominent player in the chemicals industry with a market capitalization of $85 billion, announced Wednesday it has completed its acquisition of BASF’s Brazilian architectural paints business, known as Suvinil, following regulatory approvals of the deal first announced in February. According to InvestingPro data, Sherwin-Williams maintains strong financial health with an overall score of "GOOD."

The acquisition adds approximately $525 million in annual sales to Sherwin-Williams’ portfolio based on Suvinil’s 2024 performance, complementing the company’s existing annual revenue of $23 billion. The Brazilian paint maker, which employs about 1,000 people and operates two production facilities in Brazil’s Northeast and Southeast regions, will become part of Sherwin-Williams’ Consumer Brands Group. InvestingPro analysis indicates the company is currently trading above its Fair Value, with a P/E ratio of 33.8x.

"Suvinil is a business we have admired for decades," said Heidi G. Petz, Sherwin-Williams Chair, President and Chief Executive Officer, in a press release statement. "Suvinil is highly complementary to our existing presence in Latin America, where we have operated for more than 80 years."

The Brazilian company manufactures and sells products under the Suvinil and Glasu! brand names to professional painters, designers, architects, contractors and consumers throughout Brazil.

Sherwin-Williams paid a purchase price representing a low teens EBITDA multiple after anticipated synergies and one-time costs. The company expects to maintain its target net-debt to EBITDA ratio between 2.0 and 2.5 times by the end of 2025.

The acquisition is expected to increase Sherwin-Williams’ consolidated sales by a low single-digit percentage in the fourth quarter of 2025 compared to the same period in 2024. The company stated the transaction will have an immaterial impact on diluted net income per share in the quarter due to transaction closing costs and purchase accounting amortization.

Sherwin-Williams, founded in 1866, operates more than 5,400 company-owned stores globally and manufactures products under brands including Valspar, Minwax, Krylon, and Dutch Boy. The company has maintained dividend payments for 47 consecutive years, with a current dividend yield of 0.91%. For deeper insights into Sherwin-Williams’ financial health and growth prospects, including 12 additional exclusive ProTips, visit InvestingPro for a comprehensive analysis report.

In other recent news, Sherwin-Williams has been the focus of several analyst assessments amid varying market conditions. Jefferies has maintained its Hold rating on the company, citing ongoing weak demand in the paint and coatings sector. UBS, however, reiterated a Buy rating with a $395 price target, despite Sherwin-Williams’ cautious outlook on the U.S. housing market. RBC Capital also reaffirmed an Outperform rating with a $400 price target following discussions with company executives. Meanwhile, BMO Capital has adjusted its price target from $405 to $391, citing a notable earnings per share (EPS) miss and guidance cut, though it remains optimistic about the company’s long-term prospects. KeyBanc has maintained a Sector Weight rating, noting softer demand in U.S. construction and industrial markets and subsequently lowering its 2025 EPS estimate by 4%. These developments reflect the mixed outlook for Sherwin-Williams as it navigates current market challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.