The Sherwin-Williams Company announced it has entered into a definitive agreement with BASF Group to buy BASF’s Brazilian architectural paints business for $1.15 billion in an all-cash deal.
This business is a leading provider of architectural paints in Brazil and had sales of about $525 million for the year ended December 31, 2024. And 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 also employs approximately 1,000 employees and operates two production facilities strategically located in Brazil’s Northeast and Southeast regions.
Sherwin-Williams plans to finance the transaction through a combination of cash on hand, liquidity available under existing facilities, and new debt. The purchase price represents a low teens EBITDA multiple following anticipated post-transaction synergies net of one-time costs.
The deal is expected to close during the second half of 2025 and is subject to customary closing conditions, including Brazilian regulatory approval. Upon closing, Suvinil will become part of the Sherwin-Williams Consumer Brands Group, with a joint focus on a seamless customer experience and opportunities for employees.
KEY QUOTES:
“Suvinil is a premier provider of architectural paints in Brazil and will accelerate our commitment to provide industry-leading solutions for our customers while delivering profitable above-market growth in the region. For more than 60 years, Suvinil has been synonymous with innovation and quality. The business is highly complementary to Sherwin-Williams in Latin America, as the Suvinil brand is well-known and highly-trusted by purchasing influencers and specifiers across the value chain. We are excited to capitalize on the strengths of both companies to further enhance value for customers. Upon the close of the transaction, we are confident that Sherwin-Williams growth mindset and continuous improvement disciplines will enable us to achieve meaningful sales acceleration and cost synergies which we expect will expand Suvinil’s EBITDA margin, excluding one-time integration expenses. We have tremendous respect for the expertise and dedication of the Suvinil team, and we are excited about the opportunities that this combination will provide to customers and employees.”
– Heidi G. Petz, Sherwin-Williams Chair, President and Chief Executive Officer
“The signing marks an important step in unlocking the value of our standalone businesses, and I am delighted that we have made such rapid progress in finding a new home for Suvinil. We are convinced that the decorative paints business will continue to thrive as part of Sherwin-Williams. We are deeply grateful to our employees for their hard work and dedication, which have made Suvinil the most recognized brand for decorative paints in Brazil.”
– Anup Kothari, member of the Board of Executive Directors of BASF SE and responsible for the Coatings division
