Sherwin-Williams to Complete Major Acquisition

Sherwin-Williams Acquires German Wood Coatings Companies Oskar Nolte GmbH and Klumpp Coatings GmbH Sherwin-Williams announced it has reached an agreement to acquire Specialized Industrial Coatings Holding (SIC Holding), a Germany-based venture of Peter Möhrle Holding and GP Capital UG, which comprises Oskar Nolte GmbH and Klumpp Coatings GmbH. The business's solution portfolio includes film coatings for the paperboard, furniture and flooring industries, as well as radiation-cured and water-based coatings. With operations in Europe, Asia and South America, the company employs approximately 220 people and generates annual sales exceeding EUR 91.5 million. It will become part of Sherwin-Williams Performance Coatings Group's reportable segment. The transaction is expected to close in early 2023, following regulatory approvals. Sherwin-Williams President and CEO John G. Morikis said, "This acquisition creates an opportunity to accelerate our profitable growth in the global industrial wood market and aligns with our strategy of acquiring complementary, high-quality and differentiated businesses. The company's comprehensive offerings include unique and innovative film coatings that provide us access to another growing market where Sherwin-Williams has not previously operated. We are excited about the strong technical and commercial teams at Oskar Nolte and Klumpp Coatings, their excellent relationships with multinational and local customers, strategically positioned manufacturing facilities, and significant specification and approval positions. We will leverage all of these in Europe and other regions. Once the acquisition closes, we will welcome the talented employees of these companies with great enthusiasm." he stated. Morikis added, "Today's announcement further demonstrates our commitment to creating shareholder value through our consistent and balanced capital allocation strategy. During the first nine months of 2022, we invested approximately USD 191 million in core capital expenditures primarily targeting growth initiatives, allocated approximately USD 630 million for acquisitions, and returned just over USD 1.2 billion to shareholders through dividends and share repurchases. We expect to continue this approach, supported by our ongoing strong cash generation."   Source