Cleveland, Ohio-based paint and coatings company Sherwin-Williams has announced that it is to acquire Swiss chemical firm Sika's European industrial coatings business in a deal expected to close at the beginning of 2022.
Sherwin-Williams. Photo: Mike Mozart. Licence: CC BY
Photo: Mike Mozart. Licence: CC BY
Based in Vaihingen, Germany, Sika's European industrial coating business develops, manufactures and sells corrosion protection coating systems for a range of industrial sectors. These include high-value 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, and pipework, and water and wastewater applications, along with fire protection coating systems to protect and preserve steel, wood and concrete building components.
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In 2020, the business saw sales of around CHF 75 million (€70 million).
Once the transaction is complete, the newly acquired business will become part of the Sherwin-Williams Performance Coatings Group operating segment, with a reported 130 Sika employees expected to join the US company.
"This transaction fits our strategy of acquiring complementary, high-quality, differentiated businesses that add to our profitable growth momentum," said Sherwin-Williams Chairman, President and Chief Executive Officer, John G. Morikis.
Vaihingen, Germany
Sika's industrial coatings arm is based in Vaihingen, Baden-Württemberg, Germany.
"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."
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"It is of great importance for Sika to have found a good strategic owner for the European industrial coatings business that will continue to invest in the further development of its people and products," said Ivo Schädler, Sika's Regional Manager EMEA.
"Sherwin-Williams is a strong, growing company with a strategic focus on coatings and paints. Within this organisation, the industrial coatings business along with its employees will be in an ideal position to develop and grow to their full potential," he added.
Neither company has disclosed the financial details of the transaction.
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