Last month, global coatings manufacturer The Sherwin-Williams Company announced plans to acquire German-based Specialized Industrial Coatings Holding (SIC Holding), a Peter Möhrle Holding and GP Capital UG venture comprised of Oskar Nolte GmbH and Klumpp Coatings GmbH.
“This acquisition creates opportunities to accelerate our profitable growth in the global industrial wood market and fits our strategy of acquiring complementary, high-quality and differentiated businesses,” said Sherwin-Williams Chairman and Chief Executive Officer, John G. Morikis.
“The company's extensive offerings include unique and innovative foil coatings, which provide us with access to another adjacent growth market where Sherwin-Williams has not participated previously. We are excited by Oskar Nolte's and Klumpp Coatings' strong technical and commercial teams, excellent relationships with multi-national and local customers, strategically-located manufacturing, and key specification and approval positions, all of which we will leverage further throughout Europe and beyond. We look forward to welcoming the talented employees of these businesses to the Sherwin-Williams family upon the close of the transaction.”
According to the press release issued by Sherwin-Williams, the combined coatings companies’ portfolio includes foil coatings, radiation-cured and water-based coatings for the board, furniture and flooring industry.
Oskar Nolte GmbH and Klumpp Coatings GmbH are also reported to employ approximately 220 employees and make more than 91.5 million euros ($96.4 million) in annual sales. Combined, the coatings companies have a presence in Europe, Asia and South America.
“Today's announcement further demonstrates our ongoing commitment to creating shareholder value through our consistent and balanced capital allocation strategy,” added Morikis. “Through the first nine months of 2022, we have invested approximately $191 million in core capital expenditures largely aimed at growth initiatives, deployed approximately $630 million for acquisitions, and returned just over $1.2 billion to shareholders in the form of dividends and share buybacks. We expect to continue our approach supported by our strong ongoing cash generation.”
The transaction is expected to close by early 2023, pending customary regulatory approvals. Once approved, the companies will become part of the Sherwin-Williams Performance Coatings Group.
The latest acquisition announcement follows shortly behind Sherwin-Williams sharing that it would be acquiring Italian designer, manufacturer and distributor of industrial wood coatings, Industria Chimica Adriatica S.p.A. (ICA). That deal is expected to reach completion by the end of 2022. Upon finalization, ICA will also become part of the Sherwin-Williams Performance Coatings Group operating segment.
Expansion Groundbreaking
In late October, global coatings manufacturer The Sherwin-Williams Company hosted a ceremonial groundbreaking to expand its architectural paint and coatings manufacturing and distribution facilities in Statesville, North Carolina.
“Today marks an important milestone for Sherwin-Williams in continuing to serve our customers and investing in our employees,” said John G. Morikis, Sherwin-Williams Chairman and Chief Executive Officer. “This project will support our growth for years to come. We are proud to be a part of the community here and grateful for the partnership we have with the local and state officials.”
Earlier this year, Sherwin-Williams and the state of North Carolina, Iredell County and the City of Statesville signed an agreement approving the expansion as well as the establishment of a larger distribution facility.
The area in Statesville was chosen after looking at several potential expansion locations across the state in a competitive vetting process. The location reportedly has well-suited grounds for transportation infrastructure, a strong current workforce and a deep local talent pool.
The location is also better suited for the facility to handle the additional capacity and provides centralization of existing distribution opportunities for Sherwin-Williams’ regional operations, according to the company.
“This project in Statesville adds to North Carolina's reputation as a top workforce location for modern manufacturing,” said North Carolina Governor Roy Cooper. “With more than 2,400 full-time Sherwin-Williams employees in our state and more coming, our state is committed to the education and training that will create success for years to come.”
The project intends to build an additional 36,000 square feet of facility space to its existing 200,000-square-foot. Construction efforts will also involve the construction of a new 800,000-square-foot distribution and fleet transportation center, in addition to four new rail spurs at the existing manufacturing site.
Another 200,000 square feet of space is still available and could potentially be used for additional expansions at the distribution site in the future.
Sherwin-Williams will receive approximately $30 million in state, county and local government incentives toward the project. The funding is noted to reflect the strength of the public-private partnership between Sherwin-Williams and the state of North Carolina, Iredell County and the City of Statesville and underscores the company’s confidence in the region and its people.
The project is expected to reach competition in 2024.
Recent Sherwin-Williams News
Also in October, Sherwin-Williams released its financial earnings report for the 2022 third quarter, which officially ended on Sept. 30.
The company reported a year-over-year consolidated net sales increase of 17.5% to a record $6.05 billion. Diluted net income per share, in addition to earnings before interest, taxes, depreciation and amortization all also witnessed increases for the quarter.
A full recap of the report can be viewed here.
Shortly after the financial earning report was released, Sherwin-Williams announced that 400 gallons of Emerald Rain Refresh paint in Extra White SW 7006 was used to complete the restoration project at the Hollywood sign in California.
The sign measures 450 feet long, with each letter measuring 45 feet high and between 31 and 39 feet wide.
Previously in 2012, the project cost $175,000 to restore and used . This was funded by Hollywood Sign Trust and The Sherwin-Williams Company. According to Sherwin at the time, the project was estimated to take between eight and 10 weeks. During that time, crews would apply two coats (255 gallons) of Sherwin-Williams’ Emerald Exterior Acrylic Latex.
Upon completion of the front, crews also scraped and sanded the back of the letters, which were then coated with the same primer and exterior paint.
After the paint’s 10-year lifecycle, crews returned again in 2022 to complete another restoration just in time for the historical landmark’s centennial celebration. Completed in just four weeks, crews utilized Emerald Rain Refresh for its ultra-durability, Self-Cleaning Technology, UV and weather protection properties.
The innovative coating is formulated to repel dirt upon contact with rain or water for a clean and fresh look with minimal maintenance.
“We're thrilled to continue our longstanding partnership with the Hollywood Sign Trust to usher the Sign into its next century,” said Justin Binns, President of the Americas Group at Sherwin-Williams. “For 155 years, Sherwin-Williams has helped protect and beautify our nation's most iconic landmarks through trusted and innovative paint solutions, and it was an honor for us to help bring this stunning milestone restoration to life.”
