Sherwin-Williams Buying Valspar

CBJ — Sherwin-Williams has agreed to acquire rival U.S. paint company Valspar in an all-cash deal valued at about $9.3 billion. Sherwin-Williams will pay $113 a share.

The combined company would have pro forma 2015 revenues of $15.6 billion, adjusted earnings before interest, tax, depreciation and amortization of $2.8 billion, and about 58,000 employees.

Sherwin-Williams will remain headquartered in Cleveland. Valspar is based in Minneapolis.

Sherwin-Williams manufactures products under the Sherwin-Williams, Dutch Boy, Krylon, Minwax, Thompson’s Water Seal and other brands. In addition, to making coatings for the construction, industrial and transportation markets, Valspar sells consumer paints under the Valspar, Cabot Stain, Devine Color and other brands.

The companies estimated annual savings of $280 million of within two years.

The transaction is expected to close by the end of the first quarter of 2017, subject to approval by Valspar shareholders. The boards of directors of both companies have unanimously approved the deal.