by CLEVELAND — Paint and wood coatings specialist Sherwin-Williams said it has reached an agreement to purchase German-based Specialized Industrial Coatings Holding.
SIC is a Peter Möhrle Holding and GP Capital UG venture comprised of Oskar Nolte GmbH and Klumpp Coatings GmbH.
In addition to foil coatings, the company specializes in radiation-cured and water-based coatings for the board, furniture and flooring industries. It has 220 employees in Europe, Asia and South America and has annual sales of just over $92 million based on current exchange rates.
The deal is expected to be completed in early 2023, pending regulatory approvals. At that point, SIC would become part of Sherwin-Williams’ Performance Coatings Group.
“This acquisition creates opportunities to accelerate our profitable growth in the global industrial wood market and fits our strategy of acquiring complementary, high-quality and differentiated businesses,” said Sherwin-Williams chairman and CEO John G. Morikis. “The company’s extensive offerings include unique and innovative foil coatings, which provide us with access to another adjacent growth market where Sherwin-Williams has not participated previously.”
“We are excited by Oskar Nolte’s and Klumpp Coatings’ strong technical and commercial teams, excellent relationships with multi-national and local customers, strategically-located manufacturing, and key specification and approval positions, all of which we will leverage further throughout Europe and beyond,” Morikis added. “We look forward to welcoming the talented employees of these businesses to the Sherwin-Williams family upon the close of the transaction.”
The company did not reveal the proposed purchase price, although Morikis said that the deal “further demonstrates our ongoing commitment to creating shareholder value through our consistent and balanced capital allocation strategy.”
He added that through the first nine months of this year, the company has spent about $191 million in capital investments largely aimed at growth initiatives.
In addition, he said, the company has deployed about $630 million for acquisitions and returned just over $1.2 billion to shareholders in the form of dividends and share buybacks.
“We expect to continue our approach supported by our strong ongoing cash generation,” he added.
