MEXICO CITY (dpa-AFX) - U.S. paint maker Sherwin-Williams Co. (SHW) agreed Monday to acquire privately-held Mexican peer Consorcio Comex, S.A. de C.V. in an all-cash deal valued at about $2.34 billion, including assumed debt.
The deal will help expand Sherwin-Williams' presence throughout North America, but especially in Latin American countries.
'This transaction will significantly increase our presence in markets where our store count is low, it builds upon our strategy to grow our architectural paint business in the Americas and it brings a high-quality, dedicated team of employees to Sherwin-Williams,' Sherwin-Williams Chairman and CEO Christopher Connor said in a statement.
Comex is a privately-held business with operations in Latin America, the U.S. and Canada, manufacturing and selling architectural and industrial coatings in Mexico through 3,300 points of sale operated by 750 concessionaires. Comex had total annual sales of $1.4 billion in 2011.
Comex entered the U.S. market through its $400 million acquisition of Professional Paint, Inc. from its owner investment firm The Jordan Co. L.P.
The deal will boost Sherwin-Williams' position as a supplier of premium architectural paints and related products to professional painting contractors in the Americas.
Cleveland, Ohio-based Sherwin-Williams manufactures and sells brands such as Dutch Boy, Minwax, Krylon, and Thompson's Water Seal through a network of more than 4,000 company-operated stores and facilities.
'We are very pleased and excited to join the Sherwin-Williams team and look forward to making a major contribution to the Company's ongoing success across the Americas. We have respected Sherwin-Williams for years, and are delighted to now be a partner,' Comex CEO Marcos Achar Levy stated.
In Monday's regular trading session, SHW is currently trading at $146.56, up $5.72 or 4.06% on a volume of 0.61 million shares. In the past 52-week period, the stock has been trading in a range of $82.35 to $156.50.
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