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Sherwin-Williams Acquires BASF's Brazilian Paint Business Suvinil
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Key Takeaways
Sherwin-Williams completed its acquisition of BASF's Brazilian architectural paints business, Suvinil.
The deal adds an entity that aligns directly with SHW's long-term growth strategy.
The acquisition strengthens SHW's Consumer Brands Group and supports long-term Latin American growth.
The Sherwin-Williams Company (SHW - Free Report) recently announced the completion of the acquisition of BASF’s Brazilian architectural paints business, Suvinil, in accordance with the agreement announced in February this year and further customary regulatory approvals.
This was Sherwin-Williams’ opportunity to add an organization that aligns directly with the company’s long-term growth strategy. The highly complementary acquisition is expected to strengthen the company’s presence in Latin America while also accelerating the delivery of industry-leading solutions.
Suvinil, a leading provider of architectural paints in Brazil, generated approximately $525 million in revenues in 2024. It develops, manufactures and sells innovative products under the Suvinil and Glasu brands. Its products are geared for professionals, designers, contractors and consumers across the country. With about 1,000 employees and two strategically located production facilities in the Northeast and Southeast regions of Brazil, Suvinil brings distribution, technology, and manufacturing capabilities, along with outstanding talent and customers, integrating into Sherwin-Williams’ Consumer Brands Group.
The purchase price represented a low-teens EBITDA multiple after including expected synergies net of one-time costs. The company expects to end 2025 with a net-debt-to-EBITDA ratio within its 2.0–2.5x target range. The acquisition is also set to increase consolidated sales by a low single-digit percentage in the fourth quarter of 2025 compared to the prior year. The immediate impact on earnings per share will be immaterial due to closing costs and purchase accounting amortization.
SHW’s shares have lost 4.9% over the past year compared with the industry’s 4.7% decline.
The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $7.11 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.03%. Its shares have gone up by 119.9% in the past year.
The Zacks Consensus Estimate for MEOH’s current fiscal-year earnings is pegged at $3.7 per share.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.
The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 38.2% in the past year.
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Sherwin-Williams Acquires BASF's Brazilian Paint Business Suvinil
Key Takeaways
The Sherwin-Williams Company (SHW - Free Report) recently announced the completion of the acquisition of BASF’s Brazilian architectural paints business, Suvinil, in accordance with the agreement announced in February this year and further customary regulatory approvals.
This was Sherwin-Williams’ opportunity to add an organization that aligns directly with the company’s long-term growth strategy. The highly complementary acquisition is expected to strengthen the company’s presence in Latin America while also accelerating the delivery of industry-leading solutions.
Suvinil, a leading provider of architectural paints in Brazil, generated approximately $525 million in revenues in 2024. It develops, manufactures and sells innovative products under the Suvinil and Glasu brands. Its products are geared for professionals, designers, contractors and consumers across the country. With about 1,000 employees and two strategically located production facilities in the Northeast and Southeast regions of Brazil, Suvinil brings distribution, technology, and manufacturing capabilities, along with outstanding talent and customers, integrating into Sherwin-Williams’ Consumer Brands Group.
The purchase price represented a low-teens EBITDA multiple after including expected synergies net of one-time costs. The company expects to end 2025 with a net-debt-to-EBITDA ratio within its 2.0–2.5x target range. The acquisition is also set to increase consolidated sales by a low single-digit percentage in the fourth quarter of 2025 compared to the prior year. The immediate impact on earnings per share will be immaterial due to closing costs and purchase accounting amortization.
SHW’s shares have lost 4.9% over the past year compared with the industry’s 4.7% decline.
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SHW’s Zacks Rank & Key Picks
SHW currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines (AEM - Free Report) , Methanex Corporation (MEOH - Free Report) and The Mosaic Company (MOS - Free Report) . AEM sports a Zacks Rank #1, while MEOH and MOS carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $7.11 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.03%. Its shares have gone up by 119.9% in the past year.
The Zacks Consensus Estimate for MEOH’s current fiscal-year earnings is pegged at $3.7 per share.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.
The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 38.2% in the past year.