Protective coatings manufacturer The Sherwin-Williams Company recently signed an agreement to acquire the European industrial coatings business of Sika AG. The transaction is expected to close in the beginning of 2022.
Based in Germany with additional sales and technical support in Poland, Austria, and Switzerland, the acquired business is involved in the engineering, manufacturing, and selling of coating systems for corrosion protection. Financial terms were not disclosed in the announcement.
According to Sherwin-Williams, Sika’s coating systems are used in markets such as interior and exterior steel infrastructure; bridges; airport and rail; wind and energy; chemicals; power transmission and stations; interior linings for oil and gas tanks; vessels; pipework; water and wastewater applications; and fire protection coating systems to protect and preserve steel, wood, and concrete building components.
Sales of the acquired business were approximately $82 million for the year ended December 31, 2020, according to the announcement. Following the closing date, the business will join the performance coatings operating segment of Sherwin-Williams, along with approximately 130 Sika employees.
“This transaction fits our strategy of acquiring complementary, high-quality, differentiated businesses that add to our profitable growth momentum,” said John G. Morikis, chairman, president, and CEO 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,” Morikis added. “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.”
For more information, contact: Sherwin-Williams, (800) 474-3794, www.sherwin.com