Sherwin-Williams announced on Monday an agreement of $ 1.15 billion in cash to buy German Basf’s paint businesses in Brazil gathered under the Suvinil brand.
The businesses to be purchased, which include the Glasu! Brand, generated net revenue of $ 525 million last year, the US group said, citing that the operations employ about 1,000 employees in Brazil in two factories, one in the Northeast and another in the southeast.
“Business is highly complementary to Sherwin-Williams in Latin America, with the Suvinil brand being well known and with high confidence among opinion trainers in the value chain,” Heidi Petz, executive president of the US group, said in a statement in a statement in a statement in a statement in a statement to the press.
According to Sherwin-Williams, the acquisition price represents a multiple of profit before interest, taxes, depreciation, and low teens amortization, something between 13% and 14%, after considering non-recurring synergies and costs.
The expectation of companies is that the business will be completed in the second half, depending on regulatory approvals in Brazil.
“Upon completion, Suvinil will be part of the Sherwin-Williams consumer group,” the US group said in the statement.
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The business takes place at a time of continuous growth of the construction market in Brazil, especially driven by the Federal Program Minha Casa Minha Vida.
Earlier, the Brazilian Construction Industry Chamber (CBIC) stated that residential real estate launches by 2024 grew 18.6%to 383.5 thousand. Sales rose 20.9%to 400.5 thousand.
