Paint maker Sherwin-Williams has agreed to acquire coatings supplier Valspar in an all-cash deal valued at $11.3 billion that is expected to help its international expansion.
The $27 billion Sherwin-Williams, based in Cleveland, Oh., said it has agreed to buy Minneapolis company for $113 a share, which represents a 35% premium over the company's closing price Friday.
Shares of the New York Stock Exchange-listed Valspar, valued at $6.6 billion, closed at $83.83 a share Friday.
The combined company is expected to have 58,000 employees and accelerate Sherwin-Williams' growth strategy by expanding its platform overseas, particularly in Asia, the company said in a press release.
"Valspar is an excellent strategic fit with Sherwin-Williams," said John G. Morikis, Sherwin-Williams president and CEO. "We expect this transaction to be immediately accretive excluding one-time costs and meaningfully enhance our cash flow generation profile," he said.
The transaction is expected to close this time next year as it is is subject to approval by Valspar shareholders, as well as regulatory approval. The two companies said they believe that they will receive the required regulatory clearances.
