The Sherwin-Williams Company has signed an agreement to acquire Sika’s European industrial coatings business. The transaction is expected to close at the beginning of 2022.
Based in Germany with additional sales and technical support in Poland, Austria and Switzerland, Sika’s European industrial coating business engineers, manufactures and sells corrosion protection coating systems for high value interior and exterior steel infrastructure. These include bridges, airport and rail, wind and energy, chemicals, power transmission and stations, interior linings for oil and gas tanks, vessels and pipework, as well as water and wastewater applications. It also manufactures fire coating systems to protect and preserve steel, wood and concrete building components.
According to Sherwin-Williams, sales of the business were approximately 75 million Swiss francs ($113 million) for the financial year ended 31 December 2020. The acquired business will become part of the company’s Performance Coatings Group operating segment, and approximately 130 Sika employees are expected to join Sherwin-Williams.
“This transaction fits our strategy of acquiring complementary, high-quality, differentiated businesses that add to our profitable growth momentum,” said John Morikis, Chairman, President and Chief Executive Officer of Sherwin-Williams. “The business brings us scale, unique technology, a strong sales and marketing team, technical service capabilities, strategically located manufacturing, and leading specification and approval positions, all of which we can leverage further throughout Europe and other regions across the world.
“Additionally, synergy opportunities give us great confidence in accelerating the already strong financial performance of the business. We look forward to officially welcoming Sika’s industrial coating employees to Sherwin-Williams upon the close of the transaction at the beginning of next year.”