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From Home Furnishing Business

Sherwin-Williams, Valspar Extend Merger Deadline to June 21

Sherwin-Williams (NYSE: SHW) and Valspar (NYSE: VAL) said they have extended the termination date of their merger agreement to June 21 to allow Sherwin-Williams more time to divest itself of certain Valspar businesses.

The agreement had been set to expire today, but Sherwin-Williams officials said they remain confident the divestiture and closing of the Valspar acquisition can be finalized by the new date.

Sherwin-Williams has agreed to acquire Valspar, a major coatings supplier for the furniture industry, for $113 a share, but the deal is expected to require approval by the Federal Trade Commission.

The acquisition agreement can be terminated if Sherwin-Williams is required to divest businesses representing more than $650 million of Valspar's 2015 revenues, but Sherwin-Williams said the divestitures should be well below that threshold. 

"We continue to move forward on the divestiture of a single business that we believe will allow us to gain approval from the FTC, and we are in discussions with a number of prospective buyers," said John Morikis, chairman, president and CEO of Sherwin-Williams. "We remain confident in our ability to complete the divestiture at a fair price, and we look forward to unlocking the value of the combined business when the Valspar acquisition closes."

Morikis said the company expects to provide more definitive timing for the divestiture and completion of the Valspar acquisition on its first quarter earnings conference call on April 20.

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