The Sherwin-Williams Company 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.
