Paint giant, Sherwin-Williams has wrapped up its $11.3 billion acquisition of Valspar, creating a premier global paints and coatings company. This follows the recent approval of the transaction by the US Federal Trade Commission (FTC) and the Canadian Competition Bureau (CCB).

As per the terms of the merger deal, shareholders of Valspar will get $113 per share in cash. As the transaction completed prior to the close of business on June 1, the Valspar quarterly dividend payable on June 8 will not be paid.

To secure approvals for the merger from the FTC and CCB, the companies in April agreed to sell Valspar’s North American Industrial Wood Coatings business assets to Axalta Coating Systems for $420 million in cash. The divestiture of these assets was also completed on June 1.

The Valspar acquisition allows Sherwin-Williams to reinforce its position as a leading paints and coatings provider globally leveraging highly complementary offerings, strong brands and technologies.

Valspar: a strategic fit in Sherwin-Williams’ brand portfolio

Valspar is a strategic fit and the merger extends Sherwin-Williams’ brand portfolio and customer relationships in North America and bolster its global finishes business. The buyout also significantly enhances Sherwin-Williams’ competitive profile.

The integrated company with pro-forma annual revenues of $15.8 billion has a prominent market position in architectural paint across North America, South America, China, Australia and the UK. It is also a global leader in packaging coatings, coil coatings, general industrial coatings and industrial wood coatings.

Sherwin-Williams expects to achieve $320 million in annual synergies within three years following the deal closure. It also expects the transaction to be immediately accretive to adjusted earnings and to considerably increase its operating cash flow.

Sherwin-Williams is benefiting from its cost control initiatives. Moreover, it remains focused on growth through acquisitions and expansion of operations.

John G Morikis, chairman, president and chief executive officer of Sherwin-Williams, said: “We are pleased to complete this transaction, and I would like to officially welcome our new colleagues from Valspar and the tremendous talent they bring to Sherwin-Williams. The acquisition of Valspar accelerates Sherwin-Williams› global growth strategy and creates the global leader in paints and coatings. The combination of these two companies creates a world class brand portfolio, expanded product range, premier technology and innovation platforms and an extensive global footprint. These enhanced capabilities will benefit our customers and create sustainable long-term value for our shareholders.”

With corporate headquarters in Cleveland, Ohio, the combined company generated pro forma 2016 revenues of $15.8 billion and employs approximately 60,000 associates worldwide. It has a prominent market position in architectural paint in North America, South America, China, Australia and the UK.  In industrial coatings, the combined company is a global market leader in packaging coatings, coil coatings, general industrial coatings and industrial wood coatings.