Sherwin-Williams Completes Acquisition of BASF's Brazilian Architectural Paints Business

Rhea-AI Summary

Sherwin-Williams (NYSE:SHW) has successfully completed its acquisition of BASF's Brazilian architectural paints business, Suvinil. The acquisition, first announced in February 2025, brings Suvinil's $525 million annual sales operation under Sherwin-Williams' Consumer Brands Group.

Suvinil, a leading Brazilian architectural paints provider, brings two production facilities, approximately 1,000 employees, and well-known brands including Suvinil and Glasu! to Sherwin-Williams' portfolio. The purchase price represents a low teens EBITDA multiple after anticipated synergies. The acquisition is expected to increase Sherwin-Williams' consolidated sales by a low single digit percentage in Q4 2025.

Positive

• Strategic expansion in Latin America where company has 80+ years of presence
• Acquisition adds $525 million in annual sales to portfolio
• Purchase includes two strategic production facilities in Brazil
• Company expects to maintain healthy net-debt to EBITDA ratio of 2.0-2.5x
• Acquisition brings 1,000 skilled employees and established brands to portfolio

Negative

• Transaction will have immaterial impact on Q4 2025 diluted net income per share due to closing costs
• Purchase accounting amortization will affect initial earnings impact
• Integration costs and one-time expenses expected in the short term

Insights

Financial Analyst

Sherwin-Williams' acquisition of Suvinil strengthens Latin American presence, adding $525M in sales with modest near-term financial impact.

Sherwin-Williams has completed its acquisition of BASF's Brazilian architectural paints business (Suvinil), a strategic move that aligns with the company's long-term growth objectives in Latin America. This acquisition brings approximately $525 million in annual sales (based on 2024 figures) into Sherwin-Williams' portfolio and adds roughly 1,000 employees along with two strategically located production facilities in Brazil.

The financial structure of the deal reveals measured expansion rather than transformational change. The purchase price represents a low teens EBITDA multiple after anticipated synergies and one-time costs. Management projects the acquisition will increase consolidated sales by a low single digit percentage in Q4 2025 compared to Q4 2024, with minimal impact on diluted EPS during the initial quarter due to transaction costs and purchase accounting amortization.

From a balance sheet perspective, Sherwin-Williams expects to maintain fiscal discipline with a post-acquisition net-debt-to-EBITDA ratio remaining within its target range of 2.0 to 2.5 times. This indicates the company has structured the deal to preserve financial flexibility while pursuing inorganic growth.

The strategic rationale centers on expanding Sherwin-Williams' Latin American footprint where it has operated for over 80 years. The acquisition brings complementary brand assets including the well-established Suvinil and Glasu! brands, along with technological capabilities and distribution networks. By housing Suvinil within its Consumer Brands Group, Sherwin-Williams can leverage existing infrastructure while accessing new distribution channels in Brazil's architectural paint market.

Premier business fits long-term strategy of accelerating growth, strengthening customer solutions and enhancing employee career opportunities

CLEVELAND, Oct. 1, 2025 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) has completed the acquisition of BASF's Brazilian architectural paints business ("Suvinil") following the announcement of a definitive agreement in February of this year and subsequent customary regulatory approvals.

"Suvinil is a business we have admired for decades, and the rare opportunity to add an organization of this quality to Sherwin-Williams aligns directly with our long-term growth strategy," said Heidi G. Petz, Sherwin-Williams Chair, President and Chief Executive Officer. "Suvinil is highly complementary to our existing presence in Latin America, where we have operated for more than 80 years, and immediately accelerates our ability to provide industry-leading solutions for our customers and opportunities for our employees. We are excited to add Suvinil's outstanding talent, brands, technology, distribution, manufacturing and customers to the Sherwin-Williams portfolio." 

Suvinil is a leading provider of architectural paints in Brazil and had sales of approximately $525 million for the year ended December 31, 2024. The business develops, manufactures and sells a comprehensive portfolio of innovative products under the well-known Suvinil and Glasu! brand names to professional painters, designers, architects, general contractors and consumers across the country. The company employs approximately 1,000 employees and operates two production facilities strategically located in the Northeast and Southeast regions of Brazil. Suvinil will become part of the Sherwin-Williams Consumer Brands Group.

The purchase price represents a low teens EBITDA multiple following anticipated post transaction synergies net of one-time costs. Sherwin-Williams expects to end 2025 with a net-debt to EBITDA ratio within its targeted range of 2.0 to 2.5 times. Sherwin-Williams expects Suvinil to increase the Company's consolidated sales by a low single digit percentage in the fourth quarter of 2025 compared to the fourth quarter of 2024, with an immaterial impact to diluted net income per share in the quarter given transaction closing costs and purchase accounting amortization.

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^® WaterSeal^®, Cabot^® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams^® branded products are sold exclusively through a chain of more than 5,400 Company-operated stores and branches, 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

Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws. These forward-looking statements are based upon management's current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions with respect to Sherwin-Williams, the business acquired, the completed transaction, and other matters, and include discussions of strategy, business, operating and financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of the completed transaction, and statements about future performance, operations, products and services. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "anticipate," "aspire," "believe," "could," "estimate," "expect," "goal," "intend," "may," "plan," "potential," "project," "seek," "should," "strive," "target," "will," or "would," or the negative thereof or comparable terminology.

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 our control, that could cause actual results to differ materially from such statements and from our historical results, performance and experience. These risks, uncertainties and other factors include such things as: our ability to successfully integrate the business acquired, as well as the performance of the business acquired; general business and economic conditions in the United States and worldwide; inflation rates, interest rates, unemployment rates, labor costs, healthcare costs, recessionary conditions, geopolitical conditions, terrorist activity, armed conflicts and wars, public health crises, pandemics, outbreaks of disease, and supply chain disruptions; shifts in consumer behavior driven by economic downturns in cyclical segments of the economy; shortages and increases in the cost of raw materials and energy; catastrophic events, adverse weather conditions and natural disasters (including those that may be related to climate change); the loss of any of our largest customers; increased competition or failure to keep pace with developments in key competitive areas of our business; cybersecurity incidents and other disruptions to our information technology systems; our ability to attract, retain, develop and progress a qualified global workforce; our ability to successfully integrate past and future acquisitions into our existing operations, as well as the performance of the businesses acquired; risks and uncertainties associated with our expansion into and our operations in Asia, Europe, South America and other foreign markets; policy changes affecting international trade, including import/export restrictions and tariffs; our ability to achieve our strategies or expectations relating to sustainability considerations, including as a result of evolving legal, regulatory, and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite suppliers, energy sources, or financing, and changes in carbon markets; damage to our business, reputation, image or brands due to negative publicity; the infringement or loss of our intellectual property rights or the theft or unauthorized use of our trade secrets or other confidential business information; a weakening of global credit markets or changes to our credit ratings; our ability to generate cash to service our indebtedness; fluctuations in foreign currency exchange rates and changing monetary policies; our ability to comply with a variety of complex U.S. and non-U.S. laws, rules and regulations; increases in tax rates, or changes in tax laws or regulations; our ability to comply with numerous, complex and increasingly stringent domestic and foreign health, safety and environmental (including related to climate change and chemical management) laws, regulations and requirements; our liability related to environmental investigation and remediation activities at some of our currently- and formerly-owned sites; the nature, cost, quantity and outcome of pending and future litigation, including lead pigment and lead-based paint litigation; and the other risk factors discussed in Part 1, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other reports filed with the SEC.

Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.

INVESTOR RELATIONS CONTACTS:

Jim Jaye
Senior Vice President, Investor Relations & Corporate Communications
Direct: 216.515.8682
investor.relations@sherwin.com

Eric Swanson
Vice President, Investor Relations
Direct: 216.566.2766
investor.relations@sherwin.com 

MEDIA CONTACT:

Julie Young
Vice President, Global Corporate Communications
Direct: 216.515.8849
corporatemedia@sherwin.com

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SOURCE The Sherwin-Williams Company

FAQ

What is the value of Suvinil's annual sales that Sherwin-Williams (SHW) acquired?

Suvinil reported annual sales of approximately $525 million for the year ended December 31, 2024.

How many employees and facilities does Sherwin-Williams gain from the Suvinil acquisition?

The acquisition adds approximately 1,000 employees and two production facilities located in the Northeast and Southeast regions of Brazil.

What is the expected impact of Suvinil acquisition on Sherwin-Williams' Q4 2025 sales?

The acquisition is expected to increase Sherwin-Williams' consolidated sales by a low single digit percentage in Q4 2025 compared to Q4 2024.

How will the Suvinil acquisition affect Sherwin-Williams' debt ratio?

Sherwin-Williams expects to maintain its net-debt to EBITDA ratio within its targeted range of 2.0 to 2.5 times by the end of 2025.

What brands does Sherwin-Williams acquire in the Suvinil deal?

The acquisition includes the Suvinil and Glasu! brand names, which are well-known architectural paint brands in Brazil.