The global chemical industry mergers and acquisitions strong momentum, a new deal in the United States announced the birth of. Local time on March 20th, the United States Sherwin coating giant Sherwin-Williams) announced that it will spend $11 billion 300 million acquisition of Valspar company (Valspar). According to the agreement, Xuanwei share price will be $113 all cash transactions, compared to Valspar as of March 18 before the 30 trading day average price premium of approximately 41%.
Xuan Wei said that the two companies have highly complementary products, and will enhance the global paint and paint business Wei Xuan, and accelerate to the Asia Pacific region, Europe, Middle East and Africa expansion plans.
In 2015, the two companies with revenues of $15 billion 600 million, $2 billion 800 million for EBITDA, a staff of about 58 thousand people. The "chemical weekly" said it will surpass the PPG Industrial Company, has become the world's largest manufacturer of paint, which earned $15 billion 300 million in 2015.
The transaction is expected to close in the first quarter of 2017. Xuan Wei said that a year after the merger is expected within two years can save about 280 million beauty, collaborative capacity will reach $320 million long-term savings.
According to the merger agreement, if there is contrary to expectation the divestiture, if stripped of a total of more than $650 million Valspar 2015 earnings, the transaction price adjustment of $105 per share in cash; once the divestiture requirements of more than $1 billion 500 million, is to have the right to terminate the transaction Xuan wei.
The Sherwin Williams company is headquartered in Cleveland, Ohio, founded in 1866. Business in 109 countries around the world, brands including Sherwin Williams, Berg, Sayerlack and Inchem in Rome.
Valspar was founded in 1806 and headquartered in Minnesota city of Minneapolis. Its business scope is very extensive, products include industrial coatings, architectural coatings, packaging coatings, automotive refinish and resin products.