Durability + Design
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

D+D News

Main News Page


Sherwin-Williams, Comex Seal U.S. Deal

Thursday, September 19, 2013

More items for Coatings Technology

Comment | More

While progress south of the border remains stalled, the Sherwin-Williams Company has completed the acquisition of the U.S. and Canadian paint business of Consorcio Comex, S.A. de C.V., the Cleveland-based paint and coating maker has announced.

Sherwin-Williams will pay $90 million in cash and assume liabilities currently valued in the range of $75 million, the company announced Monday (Sept. 16).

Sherwin-Williams also announced steps to keep its proposed acquisition of Comex's Mexican operations on track.

314 New Stores

Mexico City-based Comex boasts the world's largest exclusive paint retail network and is the leading architectural paint and coating manufacturer in Mexico and Central America, with 3,300 points of sale operated by 750 concessionaires.

Comex Group
Comex Group

The Comex Group has more than 3,000 stores, including 314 in North America that have now been sold to Sherwin-Williams.

The North American deal includes 314 Comex stores (234 in the U.S. and 80 in Canada) as well as eight manufacturing sites. Comex also supplies paint and coating products to about 1,500 external retailers in Canada. The company's brands include Frazee, Kwal, Parker Paints, General Paints, Color Wheel and Para.

"Both Sherwin-Williams and Comex place heavy emphasis on supplying high-quality architectural paints and coatings products in the U.S. and Canada," Sherwin-Williams said in a release.

Sherwin-Williams owns 3,542 paint stores, and its Paint Stores Group performance helped drive record sales for the company in the second quarter. The Comex NA acquisition will give Sherwin-Williams 3,856 stores.

'Exciting Step Forward'

Sherwin-Williams Chairman and CEO Christopher M. Connor called the North American deal "an exciting step forward in our ongoing effort to bring these two respected companies together."

He added, "The Comex business model in the U.S. and Canada is a good strategic fit for Sherwin-Williams and will improve our ability to serve customers in some of our most important geographic markets.”

Latin American Goals

The fate of the lion's share of Comex's business, however, has not been resolved. Sherwin-Williams announced last November that it planned to buy the Comex Group for $2.34 billion, to extend the Cleveland firm's architectural paint business in the Americas.

“This agreement enables us to complement our presence throughout Latin America, in markets where our presence is very limited,” Connor said at the time.

In July, however, Sherwin-Williams announced that The Federal Competition Commission of Mexico had rejected the deal in a 3-2 vote.

Connor said Sherwin-Williams was "disappointed by this decision, but remain hopeful that we can adequately address the Commission's objections and proceed with the transaction."

Sherwin-Williams stores
Sherwin-Williams

Sherwin-Williams' acquisition of all of Comex Group stores would marry the largest company-owned networks of paint stores in North and Central America.

On Aug. 21, a Sherwin-Williams spokesman told D+D News in an email that the company was "continuing the appeals process."

Committed to Deal

On Monday, Sherwin-Williams expressed confidence that the Mexican piece of the acquisition would still completed.

"Sherwin-Williams and Comex remain fully committed to securing regulatory approval from the Federal Competition Commission of Mexico for Sherwin-Williams to complete the acquisition of the operations of Comex in Mexico," Sherwin-Williams said in a release.

"To that end, the Stock Purchase Agreement was amended to extend the exclusivity period to March 31, 2014."

Sherwin-Williams said it would provide additional information about the Comex deal in its third-quarter earnings conference call Oct. 25.

   

Tagged categories: Acquisitions; Architectural coatings; Coatings manufacturers; Comex; Sherwin-Williams

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Keim Mineral Coatings
 
Mineral Silicate Paints + Stains Fuse to Concrete
 
• Forms permanent chemical bonds
• Becomes part of the concrete
• Will never peel
• Looks completely natural
 

 
Shield Industries, Inc
 
FireGuard® E-84 Intumescent Coating - Shield Industries, Inc
 
Trust the certified protection of the industry’s most innovative intumescent coating FireGuard® E-84 to provide you with the 1 and 2 hour fire ratings you need.
 

 
Novatek Corporation
 
Novatek Portable Air Filtration Systems
 
Air Scrubbers/Negative Air machines for restoration, abatement, dust & odor control, hazardous contaminant removal from job sites to clean rooms and hospitals. Portable, affordable!
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@durabilityanddesign.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 

© Copyright 2012-2018, Technology Publishing Co., All rights reserved