Sherwin-Williams is celebrating the acquisition of a Twin Cities corporation as an opportunity for global expansion, but what does it mean for Minnesota?
According to a Sunday press release from the companies, the Ohio-based paint giant is acquiring Minneapolis-based Valspar, which specializes in paints, primers and coatings, for "approximately $11.3 billion."
Sherwin-Williams CEO and President John G. Morikis stressed that his company would continue to be headquartered in Cleveland, Ohio, but also added, "we intend to maintain a significant presence in Minneapolis.”
While the statement didn't get into specifics about what kind of changes, if any, would be in store for Valspar's local offices or workforce, Valspar's CEO is quoted in the release as saying the acquisition would "benefit our customers, employees and other stakeholders."
As to why Sherwin-Williams laid down billions for the Minnesota company, the firm says the two corporations have "highly complementary paints and coatings offerings," which will enable Sherwin-Williams to enhance its brand.
They also believe their combined brands, technologies and capabilities will "accelerate (the) Sherwin-Williams growth strategy" by helping them expand into the Asian, European, African and Middle-Eastern markets.
Additionally, the Wall Street Journal says the buyout "would give the company more bulk in its battle with paint rivals PPG Industries Inc. and Amsterdam-based AkzoNobel NV."
The companies say the purchase was an all-cash trasnsaction.
Sherwin-Williams has more than 3,000 retail stores in the U.S. and beyond.