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The Sherwin-Williams Company has announced plans to acquire Comex Group, a 60-year-old Mexican paint company, for $2.34 billion, to expand the Cleveland firm's architectural paint business in the Americas.
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Photos: Comex Group |
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Sherwin-Williams says it will buy Comex Group for $2.34 billion in an all-cash deal. The acquisition will help the Cleveland-based paint and coatings maker increase its presence in markets where it has few stores now.
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Consorcio Comex, S.A. de C.V. (Comex Group), headquartered in Mexico City, manufactures and sells architectural and industrial coatings throughout Latin America, the U.S. and Canada. Sales generated about $1.4 billion in 2011.
The all-cash deal includes assumed debt and is subject to conditions and customary regulatory approvals, according to a release issued Monday (Nov. 12) by Sherwin-Williams.
‘Ideal Fit’
“Sherwin-Williams and Comex Group are an ideal fit in every respect—geographically, strategically and culturally,” said Christopher M. Connor, chairman and CEO of Sherwin-Williams.
Connor said the transaction would significantly increase Sherwin-Williams' presence in markets where it has few stores
“This agreement enables us to complement our presence throughout Latin America, in markets where our presence is very limited,” he said.
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Comex manufactures and sells architectural and industrial coating products throughout Latin America, the United States and Canada.
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Further, he said, the acquisition “builds upon our strategy to grow our architectural paint business in the Americas, and it brings a high-quality, dedicated team of employees to Sherwin-Williams.”
Comex Details
Founded in 1952, Comex is a privately held business with 3,300 points of sale operated by 750 concessionaires, according to the companies. Comex operates eight manufacturing sites in Mexico, five in the U.S., and three in Canada. The company has more than 7,200 employees.
In the U.S., Comex sells paint and coatings products under a variety of brand names—including Frazee, Color Wheel, Parker and Kwal Paints—through 240 company-operated paint stores. In Canada, the company markets multiple brands of paint and coatings through 78 company-operated paint stores and about 1,500 independent paint dealers.
Comex places heavy emphasis on supplying "high-quality architectural paints and coatings," according to Sherwin-Williams. However, the company’s product portfolio also includes various industrial, protective and specialty coatings.
A Sherwin-Williams' presentation on the deal calls it “a unique growth opportunity” and indicates that roughly 75 percent of Comex sales are attributed to architectural paint products.
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