Summary
This 8-K filing from The Sherwin-Williams Company (SHW) on September 17, 2013, announces a significant amendment to its previously agreed-upon acquisition of Consorcio Comex, S.A. de C.V. ("Comex"). While the initial acquisition was blocked by Mexican regulatory authorities, Sherwin-Williams has successfully completed a partial acquisition of Comex's U.S. and Canada operations for $90 million cash plus assumed liabilities. This move allows the company to gain immediate strategic assets while continuing to pursue full approval for the remaining Mexican operations.
Key Highlights
- 1Sherwin-Williams has completed the acquisition of Comex's U.S. and Canada business for $90 million cash and approximately $75 million in assumed liabilities.
- 2The previously announced acquisition of all of Comex was blocked by the Federal Competition Commission of Mexico.
- 3Sherwin-Williams and Comex remain committed to obtaining regulatory approval for the Mexican operations.
- 4The original stock purchase agreement has been amended and restated, extending the exclusivity period for the Mexican operations until March 31, 2014.
- 5The revised purchase price for the entirety of Comex (including assumed debt) is approximately $2.25 billion.
- 6The company is actively managing regulatory hurdles to achieve its strategic acquisition goals.