The Sherwin-Williams Company has signed a purchase agreement with global coatings company Hempel A/S to divest Wattyl, an Australian and New Zealand manufacturer and seller of architectural and protective paint and coatings with annual revenue of approximately $200 million USD and 750 employees. The transaction is expected to close during the first quarter of 2021, subject to customary closing conditions.
"Today's announcement of our intent to divest Wattyl aligns with our ongoing process to evaluate all aspects of our portfolio, including brands, product lines, customer programs and businesses, for their ability to meet our performance criteria and for their long-term strategic fit," said John G. Morikis, Sherwin-Williams Chairman and Chief Executive Officer. "While we've driven significant improvement in the Wattyl business, we believe Company resources can be better deployed to other opportunities offering greater growth, more meaningful scale, and higher returns and cash flow. We thank the employees of Wattyl for their contributions to Sherwin-Williams."
The Wattyl business became part of Sherwin-Williams through the 2017 acquisition of The Valspar Corporation. The business was previously reported in Sherwin-Williams Consumer Brands Group.
Deloitte Corporate Finance Australia served as M&A adviser to Sherwin-Williams and Wattyl on the transaction.