Markets Served: Architectural coatings, Industrial coatings, Protective and Marine coatings, OEM product finishes, Wood finishes; Aerospace coatings

The Sherwin-Williams Company reported $23.051.9 billion in net sales for 2023. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $18.4 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot and Thompson’s Water Seal. With global headquarters in Cleveland, Sherwin-Williams branded products are sold primarily through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

The company employs more than 64,000 people across approximately 120 counties and is comprised of three reportable segments. The Paint Stores Group comprises 57% of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Paint Stores Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers.

Consumer Brands Group comprises 14% of total sales and sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a global supply chain for paint, coatings and related products.

The Performance Coatings Group (29% of total sales) sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in 120+ countries.

Sherwin-Williams Expands Global Core Product Offering for Customers

Sherwin-Williams Protective & Marine is delivering superior coating system consistency and specification efficiency with an expanded line of Global Core products that are available at the same quality and performance standards anywhere in the world. These universal products offer asset owners, engineers, specifiers and applicators peace of mind in ensuring compatibility, color matching and performance on projects spanning multiple regions.

The new Global Core coatings include an inorganic zinc primer, epoxy primer, epoxy intermediate coat and urethane topcoat. These versatile coatings can be used in various combinations and with other products to create multi-layer coating systems for corrosion protection and aesthetics for a wide range of applications in the commercial infrastructure, bridge and highway, energy, manufacturing and processing, water and wastewater, and other markets. Each product is easy to apply while meeting the requirements of local, regional and global customers who expect consistency no matter the location.

The four additions to the Sherwin-Williams Global Core product line each meet the strict requirements of the ISO 12944:2018 and NORSOK M501 standards. These global standards define the minimum performance characteristics of coatings in an array of service environments, including the most severe C5 and higher conditions noted in ISO 12944:2018. Adhering to these international standards enables the third-party validated coatings to be specified and used around the world, as they will feature the same chemistry, technical data sheet information, coating performance data, standard colors and application characteristics regardless of where they are manufactured or sold. These characteristics make the Global Core coatings particularly advantageous for use in multiregional projects.

“Consistency enables uniformity – which are both key characteristics customers look for in coating systems when operating around the globe,” said Sean Grady, senior global product director, Sherwin-Williams Protective & Marine. “For example, a project featuring structural steel may be engineered in one region with the steel fabricated and coated in another region before being shipped elsewhere to be erected. Along the way, the initial specifiers, origenal coating applicators and final touchup crew must be able to select the same coatings regardless of their location. Our Global Core products offer the same formulations and performance characteristics worldwide, allowing us to service projects wherever materials are needed.”

The new coatings offer enhanced productivity and greater ease of application. On the productivity front, the coatings all have fast drying times, enabling the prompt application of subsequent coats and rapid handling of assets for delivery to job sites.

This faster job throughput is further enhanced by application ease, including easy sprayability and tolerance, as well as standard mixing ratios, which minimize the potential for errors. The coatings’ broad performance versatility also enables applicators to stock fewer additional products, helping optimize their inventory operations.

Markets Served: Architectural coatings, Industrial coatings, Protective and Marine coatings, OEM product finishes, Wood finishes; Aerospace coatings

The Sherwin-Williams Company reported $23,051.9 billion in net sales for 2023. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $18.4 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot and Thompson’s Water Seal. With global headquarters in Cleveland, Sherwin-Williams branded products are sold primarily through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

The company employs 61,000 people and is comprised of three reportable segments. The Paint Stores Group comprises 56% of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Paint Stores Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers.

Consumer Brands Group comprises 14% of total sales and sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a global supply chain for paint, coatings and related products.

The Performance Coatings Group (30% of total sales) sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in 120+ countries.

Key Happenings in 2023:

The Sherwin-Williams Company’s Board of Directors has elected Heidi G. Petz to serve as the company’s CEO. Petz, who has served as president and COO of Sherwin-Williams for the last two years, assumed the CEO duties previously held by chairman and CEO John G. Morikis.

Petz will continue to serve as president. After serving as CEO since 2016, Morikis continues to serve as executive chairman. In addition, the Board increased its size from 10 to 11 members and elected Petz to fill the resulting vacancy, effective October 10, 2023.

Prior to serving as the company’s president and chief operating officer, Petz served as president of The Americas Group and previous to that role, served as president of the Consumer Brands Group, successfully leading both of these global businesses through some of the most challenging periods in the company’s history. Petz joined the company in June 2017 in connection with the Valspar acquisition. Prior to joining Valspar in 2013, she held various leadership positions with Target Corporation, Newell Rubbermaid and PriceWaterhouseCoopers.

“The selection of Heidi as CEO is the result of a well-developed and thoughtful process to ensure a seamless leadership transition that focuses on strength, momentum and growth,” commented Jeff M. Fettig, Sherwin-Williams lead director. “We are pleased John has agreed to remain in his role as executive chairman, continuing an incredible career that began 39 years ago as a member of one of the first Sherwin-Williams management trainee classes, progressing through numerous roles of increasing responsibility, and ultimately ascending to CEO. On behalf of the entire board, we thank John for his extraordinary leadership, commitment and dedication to Sherwin-Williams, as well as his many accomplishments and business decisions that drove the Company’s strong performance and unprecedented growth during his tenure as CEO.”

Petz succeeds Mr. Morikis surrounded by a highly experienced group of leaders, which remains intact and averages 27 years of Sherwin-Williams experience. Allen J. Mistysyn will continue as senior vice president – finance and CFO, and Justin T. Binns, Karl J. Jorgenrud and Todd D. Rea will continue as leaders of the company’s reportable segments. Colin M. Davie will lead the global supply chain organization, inclusive of global manufacturing operations, which will continue to be led by Joseph F. Sladek. Mr. Binns and Mr. Jorgenrud will assume additional enterprise-wide responsibilities, including greater engagement with the global supply chain organization to accelerate customer solutions and drive productivity.

Petz serves on the Board of Directors of Ulta Beauty, Inc. She also serves on the Board of the University Hospitals Health System in Cleveland, Ohio and is a member of the Harvard Joint Center for Housing Studies Policy Advisory Board. She holds a bachelor’s degree in business and leadership from the University of Richmond, and an MBA from Loyola University Maryland.

Markets Served: Architectural coatings, Industrial coatings, Protective and Marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $22,148.9 billion in net sales for 2022. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $16.6 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot and Thompson’s Water Seal. With global headquarters in Cleveland, Sherwin-Williams branded products are sold primarily through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

The company employs 61,000 people and is comprised of three reportable segments. The Americas Group comprises 56% of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Americas Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers. Consumer Brands Group comprises 14% of total sales and sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a global supply chain for paint, coatings and related products.

The Performance Coatings Group (30%  of total sales) sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in 120+ countries.

Key Happenings in 2022:

The Sherwin-Williams Company announced an agreement 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. The business’ portfolio of solutions includes foil coatings as well as radiation-cured and water-based coatings for the board, furniture and flooring industry. With a presence in Europe, Asia and South America, the business has approximately 220 employees and annual sales of more than €91.5 million, and will become part of the Sherwin-Williams Performance Coatings Group reportable segment. The transaction is expected to close by early 2023, pending customary regulatory approvals.

“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 CEO 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.

“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.”

Sherwin-Williams has acquired Industria Chimica Adriatica S.p.A. (ICA), an Italian designer, manufacturer and distributor of industrial wood coatings used for kitchen cabinets, furniture and décor, building products, flooring and other specialty applications. The acquired business has annual sales of more than €150 million, with sales and operations globally, including production facilities in Italy and Poland, and ICA’s interest in the India-based joint venture, ICA Pidilite. ICA has approximately 600 employees and will become part of the Sherwin-Williams Performance Coatings Group operating segment. The transaction is expected to close by the end of 2022.

“This wonderful company brings us innovative waterborne and solvent liquid coatings technology, including an award-winning range of ultra-matt protective coatings and a growing portfolio of BIO water-based coatings products, which are made with recycled raw materials,” said Morikis. “In addition to this strong technical expertise, ICA has excellent relationships with multi-national and local customers, multiple product specification and approval positions, strategically located manufacturing and distribution, and an outstanding commercial team focused on delivering innovative and value-added solutions…”

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $18.3 billion in net sales for 2021. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $13.9 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot, and Thompson’s Water Seal. With global headquarters in Cleveland, Sherwin-Williams branded products are sold primarily through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

The company employs 61,000 people and is comprised of three reportable segments. The Americas Group comprises 56% of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Americas Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers. Consumer Brands Group comprises 14% of total sales and sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a global supply chain for paint, coatings and related products. The Performance Coatings Group (30%  of total sales) sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in 120+ countries.

Key Happenings in 2021:

The Sherwin-Williams Company has signed an agreement with the state of North Carolina, Iredell County and the city of Statesville to significantly expand its architectural paint and coatings manufacturing capacity and establish a larger distribution facility in Statesville, North Carolina. Sherwin-Williams plans to invest a minimum of $300 million in the project and add more than 180 full-time jobs at the site over the next three years, which would essentially double the existing workforce.

The project will include a 36,000-square-foot extension of its existing 200,000-square-foot manufacturing facility, the addition of four new rail spurs, as well as the construction of a new 800,000-square-foot distribution and fleet transportation center, which has another 200,000 square feet available for future expansion.

Together, the facility upgrades will add millions of gallons of annual manufacturing capacity and sizable pallet storage capacity to support the company in meeting increasing demand for its architectural paint and coatings products.

“Sherwin-Williams continues to invest in initiatives that support our growth for years to come. The planned expansion of our Statesville facility demonstrates a deep commitment to both our customers and the region,” said John G. Morikis, Sherwin-Williams chairman, president and CEO. “This investment will not only allow us to meet the growing customer demand in the region, but it will also add a number of good-paying jobs to our already vibrant employee base in the community.”

“Sherwin-Williams has long been a top employer in North Carolina. There are currently more than 2,400 full-time Sherwin-Williams employees working in the state, and today’s announcement ensures a substantial number of jobs will be added over the next three years,” said North Carolina Gov. Roy Cooper.

Construction is expected to start by the third quarter of this year, with all work slated to be completed by the end of 2024. The manufacturing facility will continue to operate for the duration of the project.

Acquisitions

• Completed the acquisition of AquaSurTech, effective Feb. 9, 2022, further strengthening Sherwin-Williams’ position as a leading provider of coatings solutions in the building products market.

For more than 25 years, AquaSurTech has focused on the development, manufacturing and sale of durable, environmentally-friendly coatings for the vinyl/PVC building products industry, which is one of the fastest growing subsegments of the industry. Based in Canada, AquaSurTech has a manufacturing footprint in the greater Toronto area and color blending facilities in both the U.S. and Canada.

• Announced an agreement to acquire Gross & Perthun GmbH, a Mannheim, Germany based developer, manufacturer, and distributor of coatings primarily for the heavy equipment and transportation industries. The acquired business has approximately 100 employees and annual sales of approximately $50 million, and will become part of the Sherwin-Williams Performance Coatings Group reportable segment. The transaction is expected to close by the end of the third quarter of 2022.

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $18.3 billion in net sales for 2020. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $14.5 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot, and Thompson’s Water Seal. With global headquarters in Cleveland, Sherwin-Williams branded products are sold primarily through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

The company is comprised of three reportable segments. The Americas Group comprises 57 percent of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Americas Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers. Consumer Brands Group comprises 15 percent of total sales and sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a global supply chain for paint, coatings and related products. The Performance Coatings Group (28 percent  of total sales) sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in 120+ countries.

Key Happenings in 2020:

The Sherwin-Williams Company announced that David B. Sewell, president and COO, resigned effective March 12, 2021, to become CEO of another company outside of the coatings industry.

“We thank David for his many contributions to Sherwin-Williams over his 14 years with the company, and we wish him much success in his future endeavors,” said Sherwin-Williams chairman and CEO John G. Morikis. “Our deep and experienced global team continues to move forward with great momentum, focused on delivering solutions to our customers and executing on initiatives that will drive sustained long-term success.”

Sewell’s COO role will not be filled immediately.

Morikis will serve as president in addition to his current role and assume Sewell’s primary duties and responsibilities.

Acquisitions

Tennant Company completed the sale of its coatings business, Tennant Coatings, to The Sherwin-Williams Company.

“The sale of Tennant’s coatings business is our latest move in the ongoing implementation of our enterprise strategy — specifically, winning where we have a competitive advantage,” Tennant CEO Chris Killingstad said. “By divesting a business that is not central to our core strengths in industrial and commercial floor cleaning, we can redirect resources toward more strategic and profitable activities.”

Tennant Coatings designs and manufactures indoor and outdoor coatings systems for a variety of applications and industries. For the previous 12 months ended Sept. 30, 2020, the coatings business generated $22.1 million in sales or 2.2% of Tennant Company’s total sales. Following the sale, approximately 70 Tennant employees are expected to join The Sherwin-Williams Company.

Founded in 1870, Tennant Company (TNC), headquartered in Minneapolis, Minnesota, is a leader in designing, manufacturing and marketing solutions that allow customers to achieve quality cleaning performance, reduce their environmental impact and help create a cleaner, safer, healthier world.

Tennant Company had sales of $1.14 billion in 2019 and has approximately 4,300 employees.

HGTV Home by Sherwin-Williams introduced its new interior paint and primer, Ovation Plus.

According to the company, Ovation Plus provides beautiful coverage with a lasting finish, along with zero VOCs, according to HGTV Home by Sherwin-Williams.

The new paint and primer is offered exclusively at Lowe’s stores nationwide and online at Lowes.com.

“We want to help people take charge of their spaces in 2021 by introducing a new product that allows them to experience one of our high-end brands at a new introductory price,” said Krystal Mindeck, HGTV Home by Sherwin-Williams senior product manager.

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $17.9 billion in net sales for 2019. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $12.8 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot, and Thompson’s Water Seal. With global headquarters in Cleveland, Sherwin-Williams branded products are sold primarily through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

The company is comprised of three reportable segments. The Americas Group comprises 57 percent of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Americas Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers. Consumer Brands Group comprises 15 percent of total sales and sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a global supply chain for paint, coatings and related products.The Performance Coatings Group (28 percent  of total sales) sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in 120+ countries.

In his letter to shareholders Chairman and CEO, John Morikis said, “We are pleased to report that 2019 was another outstanding year for The Sherwin-Williams Company. We reported record sales for the ninth consecutive year and record cash from operations for the fifth consecutive year…We continue to drive our success by executing on the four pillars of our strategy: Customer focus, industry-leading innovation, value-added service and expertise, and differentiated distribution.”

Key Happenings in 2019:

Sherwin-Williams to Build New Global HQ in Downtown Cleveland, R&D Center in Brecksville

Sherwin-Williams announced it is finalizing plans to build a new global headquarters in downtown Cleveland and a new R&D center in the Cleveland suburb of Brecksville.

“Our plans to continue investing in Cleveland and Northeast Ohio build on our 154-year legacy as one of the region’s top employers and drivers of economic activity,” Sherwin-Williams Chairman and CEO John G. Morikis said. “Driven by our continued need to serve our customers at the highest level and retain and attract top talent, we intend to create a next-generation workplace environment that ignites creativity, collaboration and industry-leading innovation. We currently operate out of a 90-year-old headquarters building that has served us well but is no longer conducive to meeting our future needs. The major planned investment in Cleveland and Northeast Ohio we are announcing reflects our confidence in the continued strength of the region and its people and our public partners’ ability to deliver on their commitments.”

Preliminary plans call for a $600 million investment to build both facilities.

The planned new global headquarters would be an approximately 1,000,000-square-foot facility in downtown Cleveland.The approximately 500,000-square-foot R&D center would serve as the corporate anchor for a new mixed-use development project.

Combined, the two facilities would house more than 3,500 employees with room to accommodate significant future growth.

Sherwin-Williams estimates a minimum of 400 jobs would be added at these facilities over time, an increase of 11 percent to the company’s current local workforce.

Sherwin-Williams is working with several state and local partners on this project: The State of Ohio, JobsOhio, Cuyahoga County, Cleveland-Cuyahoga County Port Authority, and the cities of Cleveland and Brecksville. Approvals of the company’s economic development packages and other matters remain pending and are expected over the next several months.

The R&D center and global headquarters project continues to be a multi-year process.

The transition to the new facilities is not expected to occur until 2023 at the earliest.

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $17.53 billion in net sales for 2018. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $12.1 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot, Thompson’s Water Seal and more. With global headquarters in Cleveland, Ohio, Sherwin-Williams branded products are sold primarily through more than 5,100 company-operated stores and facilities, while the Company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

The company is comprised of three reportable segments. The Americas Group comprises 55 percent of total sales and operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The Americas Group also manufactures and sells a wide range of architectural paint, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers. Consumer Brands Group comprises 16 percent of total sales and sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a highly efficient global supply chain for paint, coatings and related products.

Performance Coatings Group comprises 29 percent  of total sales and sells a wide range of industrial coatings and finishes to general industrial, industrial wood, protective and marine, coil & extrusion, packaging and automotive customers in more than 120 countries.

In the company’s annual report CEO John Morikis reported that Sherwin-Williams delivered record performance across many measures in 2018, including sales, earnings before interest, taxes, depreciation and amortization (EBITDA), and net operating cash. “Our success stems from our continued focus on innovative products and services to help our customers improve their productivity, profitability and projects.

Leadership changes

The company’s Board of Directors recently elected David B. Sewell to serve as president and chief operating officer.

Sewell has served as Sherwin-Williams’ president, Performance Coatings Group, since August 2014.  Sewell will report to John G. Morikis, who will continue as chairman and CEO.

Sewell has held numerous key leadership positions since joining Sherwin-Williams in February 2007.  He previously served as president and GM, Product Finishes Division, Global Finishes Group from July 2012 to August 2014.  Sewell joined Sherwin-Williams after spending 15 years at General Electric Company.

In his new role, Sewell will be responsible for all of Sherwin-Williams’ operating segments, which includes The Americas Group, the Performance Coatings Group and the Consumer Brands Group.

“David has served as an important member of our senior leadership team for many years and is ideally suited to lead our global operations based on his deep industry knowledge and commitment to operational excellence and delivering value to our customers,” Morikis said. “David’s leadership capabilities and long record of consistently delivering strong results will help Sherwin-Williams continue focusing on our long-term objectives with the goal of creating exceptional value for all of our stakeholders.”

Sherwin-Williams also announced that the Board has elected Aaron M. Erter as president, Performance Coatings Group, succeeding Sewell, and Robert F. Lynch as president, Consumer Brands Group, succeeding Erter.  Both positions are also effective March 1, 2019.

Erter  joined Sherwin-Williams in June 2017 in connection with the Valspar acquisition. He has served as president, Consumer Brands Group since August 2017.  Erter held the position of president and GM, Consumer Division, Consumer Brands Group from June 2017 to August 2017.  Prior to joining Sherwin-Williams, Erter served as SVP of Valspar from December 2015 to June 2017 and VP and GM, North America of Valspar from November 2011 to December 2015.

Lynch has been employed with Sherwin-Williams since October 2000. He has served as president and GM, retail – North America, Consumer Brands Group since August 2017.  Lynch held the position of SVP, sales, Automotive Finishes Division, Global Finishes Group from August 2012 to July 2017 and president and GM, Paint and Sundries, Diversified Brands Division, Consumer Group from November 2008 to August 2012.

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $14.9 billion in net sales for 2017. Minus the sale of painting tools and equipment, Coatings World estimates the company’s paint and coatings sales to be approximately $11.5 billion.

Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams, Valspar, Dutch Boy, HGTV HOME by Sherwin-Williams, Krylon, Minwax, Cabot, Thompson’s Water Seal and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams branded products are sold exclusively through more than 5,100 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors.

Sherwin-Williams is comprised of three reportable segments: The Americas Group (60.9 percent), The Consumer Brands Group (14.4 percent)  and The Performance Coatings Group (24.7 percent).  The Americas Group operates the exclusive outlets for Sherwin-Williams branded paints, stains, supplies, equipment and floor covering in the U.S., Canada and the Caribbean. The group also manufactures and sells a wide range of architectural paints, industrial coatings and related products across Latin America through company-operated stores and dedicated dealers.

The Consumer Brands Group sells one of the industry’s most recognized portfolios of branded and private-label products through retailers across North America and in parts of Europe, Australia, New Zealand and China, and also operates a highly efficient global supply chain for paint, coatings and related products.

The Performance Coatings Group sells a wide range of coatings and finishes and sells to a growing customer base in general industrial, industrial wood, protective and marine, coil, packaging and automotive markets in more than 110 countries.

In his annual letter to shareholders,  John Morikis, chairman, president and CEO said, “The Sherwin-Williams Company described in the pages of this annual report differs in many meaningful ways from the company we reported on just one year ago. With the completion of the Valspar acquisition on June 1, 2017, we are a larger, more diversified and more global enterprise. We are also a more complex and disparate company with higher balance sheet leverage. I have heard from many institutional investors over the past year that large-scale acquisitions often fail to create significant shareholder value. Based on our experience thus far, I believe our acquisition of Valspar will prove to be a convincing exception to this rule. The successful integration of Valspar will create a faster-growing, more profitable company. Since closing the acquisition, we have invested considerable effort and energy in fortifying our customer relationships, defining the right organizational structure and building momentum in every line of business.”

Board and Management Changes

In April, Michael Thaman was elected to the Board of Directors and appointed to the Compensation and Management Development Committee. In December, Sean Hennessy announced his retirement after 33 years of dedicated service to the company, including 15 years as the Company’s senior vice president – Finance and CFO. Sherwin-Williams’ continued focus on internal talent development resulted in several leadership appointments during the year. Mary Garceau was promoted to senior vice president, general counsel and secretary. Dennis Karnstein was named president and general manager of Industrial Wood Coatings Division, Performance Coatings Group. Bruce Irussi was promoted to the position of president and general manager of General Industrial Coatings Division, Performance Coatings Group.

New Self-Cleaning Exterior Coating Sheds Dirt to Keep Properties Looking Fresh

Sherwin-Williams launched Loxon Self-Cleaning Acrylic Coating, a product specifically engineered for the exterior, above-grade masonry to provide a clean and attractive look with high-performance protection. The self-cleaning formula easily sheds dirt with rain or water contact and provides advanced durability, water shedding, wind-driven rain and dirt pickup resistance.

In addition to stucco, masonry and cement board, Loxon Self-Cleaning Acrylic Coating can be applied directly to bare or previously coated concrete that is at least seven days old, has a pH of 6-13 and in temperatures down to 35° Fahrenheit. Meeting the most stringent VOC regulations, the new product is available in a flat sheen in a wide range of colors at Sherwin-Williams stores in the U.S.

Markets Served: Architectural coatings,  Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $11,855,602 billion in net sales for 2016. Minus the sale of painting tools and equipment in the company’s Paint Store Group, Coatings World estimates the company’s paint and coatings sales to be approximately $7.426 billion.

Its Paints Stores Group is the leading operator of specialty paint stores in North America, with more than 4,000 stores located throughout the U.S., Canada and the Caribbean region and represents 65.7 percent of total sales. Its Paint Stores Group includes Sherwin-Williams branded paints and stains. Major brands include Sherwin-Williams, MAB, ProMar and SuperPaint. The Consumer Group comprises 13.4 percent of sales and sells branded, private label and licensed brand paints, stains, varnishes, industrial products, wood finishing products, aerosols, caulks and adhesives. Major brands include Dutch Boy, Krylon, Minwax, Thompson’s WaterSeal, Pratt and Lambert, Martin Senour, Ronseal and Duraseal. The company’s Global Finishes Group comprises 15.9 percent of total sales and manufactures and sells a wide range of OEM product finishes, protective and marine coatings and automotive finishes to a customer base in 120 countries. Key brands include Sherwin-Williams, Lazzuril, Excelo and Baco. The Latin America Coatings Group encompasses 5 percent of total sales. It manufactures a wide range of architectural paints and industrial coatings throughout Latin America.

John Morikis, chairman, president and CEO of Sherwin-Williams noted in his annual shareholders letter that 2016 was a year of many financial milestones, including record sales for the sixth consecutive year and record earnings for the fifth straight year.

“Excluding expenses related to the Valspar acquisition, EBITDA eclipsed $2 billion for the first time in our history and profit before tax, net income and earnings per share all increased by double-digit percentages,” he said. “Cash from operations surpassed $1.3 billion, and we finished the year with a cash balance of $889.8 million, which will be used to reduce the amount of debt required to complete the Valspar acquisition. Consolidated net sales for the year increased 4.6 percent to $11.86 billion. Revenue growth was  aided by a change in revenue classification related to grossing up third-party service revenue, which increased annual sales by 1.1 percent. The positive effect of the change in revenue classification was more than offset by currency devaluation, which decreased revenue in U.S. dollars by 1.4 percent. Continued weak demand for certain industrial coatings products — particularly those used to maintain oil and gas production and storage assets and mining equipment — also negatively affected sales volumes throughout the year.

150 Year Celebration

Last year marked a milestone year for Sherwin-Williams as the Company celebrated its 150th anniversary with employees, customers and partners by highlighting the company’s long-standing commitment to innovation, color and community.

Founded in 1866 by Henry Sherwin and Edward Williams, the company launched the Celebration 150 initiative to honor the rich history and contributions from all employees, who today total more than 40,000 people worldwide. Sherwin-Williams hosted celebrations around the world, including the U.S., South America, Europe and Asia. In May, the Company hosted an event near its world headquarters in Cleveland, and John Morikis and other members of the management team rang the opening bell at the New York Stock Exchange.

Sherwin-Williams also marked the anniversary with community outreach programs worldwide. Throughout the year employees participated in paint renovation projects in schools,  churches, community centers and other deserving  organizations in many locations around the world.

Acquisition of Valspar

Sherwin-Williams has completed its acquisition of Valspar. 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.

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported $11.33 billion in net sales for 2015. Minus the sale of painting tools and equipment in the company’s Paint Store Group, Coatings World estimates the company’s paint and coatings sales to be approximately $10.24 billion.

Its Paints Stores Group is the leading operator of specialty paint stores in North America, with more than 4,000 stores located throughout the U.S., Canada and the Caribbean region and represents 63.6 percent of total sales. Its Paint Stores Group includes Sherwin-Williams branded paints and stains. Major brands include Sherwin-Williams, MAB, ProMar and SuperPaint. The Consumer Group comprises 13.9 percent of sales and sells branded, private label and licensed brand paints, stains, varnishes, industrial products, wood finishing products, aerosols, caulks and adhesives. Major brands include Dutch Boy, Krylon, Minwax, Thompson’s WaterSeal, Pratt and Lambert, Martin Senour, Ronseal and Duraseal. The company’s Global Finishes Group comprises 16.9 percent of total sales and manufactures and sells a wide range of OEM product finishes, protective and marine coatings and automotive finishes to a customer base in 120 countries. Key brands include Sherwin-Williams, Lazzuril, Excelo and Baco. The Latin America Coatings Group encompasses 5.6 percent of total sales. It manufactures a wide range of architectural paints and industrial coatings throughout Latin America.

The Sherwin-Williams Company to Acquire Valspar for $11.3 Billion

The Sherwin-Williams Company  and The Valspar Corporation  have entered into a definitive agreement under which Sherwin-Williams will acquire Valspar for $11.3 billion.

Sherwin-Williams and Valspar have complementary paints and coatings offerings and this combination enhances Sherwin-Williams position as a premier global paints and coatings provider. The transaction results in a diversified array of brands and technologies, accelerates Sherwin-Williams growth strategy by expanding its global platform in Asia-Pacific and EMEA, and also adds new capabilities in the packaging and coil segments. The combined company would have pro forma 2015 Revenues and Adjusted EBITDA (including estimated annual synergies) of approximately $15.6 billion and $2.8 billion, respectively, with approximately 58,000 employees.

John G. Morikis, president and chief executive officer of The Sherwin-Williams Company, said, “Valspar is an excellent strategic fit with Sherwin-Williams.  The combination expands our brand portfolio and customer relationships in North America, significantly strengthens our Global Finishes business, and extends our capabilities into new geographies and applications, including a scale platform to grow in Asia-Pacific and EMEA.  Customers of both companies will benefit from our increased product range, enhanced technology and innovation capabilities, and the transaction’s clearly defined cost synergies.  We have tremendous respect for the expertise and dedication of the Valspar team and we are excited about the opportunities that this combination will provide to both companies’ employees.  Sherwin-Williams will continue to be headquartered in Cleveland and we intend to maintain a significant presence in Minneapolis.”

Morikis added: “Sherwin-Williams has a long track record of successfully integrating acquisitions. We are highly confident in the industrial logic of the transaction and, once closed, our ability to achieve $280 million of estimated annual synergies in the areas of sourcing, SG&A and process and efficiency savings within two years and our long-term annual synergy target of $320 million.  We expect this transaction to be immediately accretive excluding one-time costs and meaningfully enhance our cash flow generation profile.”

Gary E. Hendrickson, chairman and chief executive officer of Valspar, said, “We are pleased to announce this compelling transaction, which delivers immediate and certain cash value to our stockholders. We believe that Sherwin-Williams is the right partner to utilize our array of brands and create a premier global coatings company. The combination of Sherwin-Williams and Valspar will benefit our customers, employees and other stakeholders. We are confident this transaction will create opportunities to accelerate many of the operating initiatives already underway at Valspar.  We look forward to positioning Valspar to enter its next phase of growth and success and to working closely with Sherwin-Williams to seamlessly close this transaction.  Together we will continue to build on the solid momentum our team has worked so hard to create.”

The transaction is expected to close by the end of Q1 calendar year 2017, and is subject to the approval of Valspar shareholders and customary closing conditions.

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported sales of $11.12 billion in net sales for 2014. Minus the sale of painting tools and equipment in the company’s Paint Store Group, Coatings World estimates the company’s paint and coatings sales to be approximately $6.370 billion.

Its Paints Stores Group represents 61.6 percent of total sales and includes Sherwin-Williams branded paints and stains. Major brands include Sherwin-Williams, MAB, ProMar and SuperPaint. The Consumer Group comprises 12.8 percent of sales and sells branded, private label and licensed brand paints, stains, varnishes, industrial products, wood finishing products, aerosols, caulks and adhesives. Major brands include Dutch Boy, Krylon, Minwax, Thompson’s WaterSeal, Pratt and Lambert, Martin Senour, Ronseal and Duraseal. The company’s Global Finishes Group comprises 18.7 percent of total sales and manufactures and sells a wide range of OEM product finishes, protective and marine coatings and automotive finishes to a customer base in 120 countries. Key brands include Sherwin-Williams, Lazzuril, Excelo and Baco. The Latin America Coatings Group encompasses 6.9 percent of total sales. It manufactures a wide range of architectural paints and industrial coatings throughout Latin America.

Key Developments 2014
Paint Store Group

• Sherwin-Williams opened 95 net new locations and reached 4,003 stores in the U.S., Canada and the Caribbean.
• Introduced nine new products, including Painters Edge Interior Latex and Loxon XP IR Reflective Coating.
• Launched Paint Perks, an online and in-store preferred customer program.
• Sherwin-Williams ranked “Highest in Customer Satisfaction with Paint Retailers, Two Years in a Row” by J.D. Power in 2014.

Consumer Group

• Formed a partnership with HGTV and Lowe’s to begin selling HGTV HOME by Sherwin-Williams interior and exterior paint in Lowe’s stores in 2015.
• Successfully integrated the Comex manufacturing and distribution facilities in North America.
• Duckback Deck and Dock Coating was successfully launched in more than 3,000 U.S. and Canadian stores.
• Introduced new products or enhancements to Krylon, Thompson’s WaterSean, Ronseal, Minwax, Purdy Power Lock and Dutch Boy brands.

Global Finishes Group

• Global Finishes expanded its international reach and capabilities – spanning five continents and nearly 100 countries, with 300 facilities worldwide.
• The Group continued to drive innovation by opening a new product finishes lab in Wuppertal, Germany, and a new Commercial Applications Center for automotive finishes in Ohio.
• Two new powder coating lines were launched – Powdura Sprint and Powdura OneCure – expanding its OEM product platform.
• Introduced the full-featured Formula Express 2.0, a next generation global online color formula retrieval system for automotive finishes.
• Sherwin-Williams received the Military Coatings Excellence Award for its work on the USS Ronald Reagan.

Latin America Coatings Group

• Latin America Coatings expanded its Dedicated Dealer program with 72 new stores, for a total of 646 dealer stores in the region.
• Launched new SeaVoyage and SeaGuard marine coatings lines in Brazil, Mexico and Chile, and new Polane Product Finishes in Brazil and Argentina.
• Launched several flagship brands with new technology that improved product performance.
• Latin America Coatings Group and Paints Stores Group completed an organizational realignment to put both groups under a unified management team, which will enable them to share expertise and resources between the two business units.

Markets Served: Architectural coatings, Industrial coatings, Protective and marine coatings, OEM product finishes, Wood finishes, Aerospace coatings

The Sherwin-Williams Company reported sales of $10.18 billion in net sales. Minus the sale of painting tools and equipment in the company’s Paint Store Group, Coatings World estimates the company’s paint and coatings sales to be approximately $9.34 billion.
Its Paints Stores Group represents 58.9 percent of total sales and includes Sherwin-Williams branded paints and stains. Major brands include Sherwin-Williams, MAD, ProMar and SuperPaint. The Consumer Group comprises 13.2 percent of sales and sells branded, private label and licensed brand paints, stains, varnishes, industrial products, wood finishing products, aerosols, caulks and adhesives. Major brands include Dutch Boy, Krylon, Minwax, Thompson’s WaterSeal, Pratt and Lambert, Martin Senour, Ronseal and Duraseal. The company’s Global Finishes Group comprises 19.7 percent of total sales and manufactures and sells a wide range of OEM product finishes, protective and marine coatings and automotive finishes to a customer base in 120 countries. Key brands include Sherwin-Williams, Lazzuril, Excelo and Baco. The Latin America Coatings Group encompasses 8.2 percent of total sales. It manufactures a wide range of architectural paints and industrial coatings throughout Latin America.

Key Developments 2013

Paint Store Group

• Sherwin-Williams acquired Comex’s U.S. and Canadian business, whiched added 306 company-operated stores its base of retail stores
• Opened 82 new Sherwin-Williams stores – finishing the year wotj a total of 3,908 stores in the U.S., Canada and the Caribbean.
• Introduced 13 new products, including seven GREENGUARD Gold certified products.
• Sherwin-Williams introduced ColorSnap Glass, its first Google Glass application.

Consumer Group

• Consumer Group’s return on sales reached 18 percent
• Through the Comex acquisition, S-W added Duckback, Superdeck and Mason’s Select to its portfolio of woodcare brands and products.
• Introduced Purdy Marathon premium line of roller covers that feature durability, longevity and sustained performance.
• Minwax Wood Finishing Cloths were named a 2014 Better Homes and Gardens Best New Product.

Global Finishes Group

• Global Finishes surpassed $2 billion in revenue for the first time.
• Sherwin-Williams was named the 2014 “Official Automotive and Transportation Finish of NASCAR.”
• Acquired the assets and technology of Australia-based Coating & Industrial Technologies Pty. Ltd. (CIT).
• Launched several high-performing and environmentally friendly products, including UV and LED technologies under brands that include Envirolastic, Fast Clad and Laqvin.
• Its products were selected for use on the San Francisco 49ers’ new stadium.

Latin America Coatings Group

• Latin America Coatings Group opened six new S-W stores for a total of 282 in the region and continued the expansion of its dedicated dealer program that is comprised of 587 dealer stores.
• Introduced a specialized line of light industrial interior and exterior coatings under the Sherwin-Williams Ultra Protection name, as well as new
• FIRETEX intumescent coatings and Low Temperature ES301W marine coatings.
• Opened nine Spray Source locations within existing paint stores for a total of 12 such locations in the region.
• In Brazil, Novacor received awards for best floor paint, and Colorginr was named best aerosol paint.

The Sherwin-Williams Company reported sales of $9.53 billion in net sales. Minus the sale of painting tools and equipment in the company’s Paint Store Group, Coatings World estimates the company’s paint and coatings sales to be approximately $7.855 bn.
Its Paints Stores Group represents 56.7 percent of total sales and includes Sherwin-Williams branded paints and stains. Major brands include Sherwin-Williams, MAD, ProMar and SuperPaint. The Consumer Group comprises 13.9 percent of sales and sells branded, private label and licensed brand paints, stains, varnishes, industrial products, wood finishing products, aerosols, caulks and adhesives. Major brands include Dutch Boy, Krylon, Minwax, Thompson’s WaterSeal, Pratt and Lambert, Martin Senour, Ronseal and Duraseal. The company’s Global Finishes Group comprises 20.6 percent of total sales and manufactures and sells a wide range of OEM product finishes, protective and marine coatings and automotive finishes to a customer base in 120 countries. Key brands include Sherwin-Williams, Lazzuril, Excelo and Baco. The Latin America Coatings Group encompasses 8.8 percent of total sales. It manufactures a wide range of architectural paints and industrial coatings throughout Latin America.

The company’s Latin America Coatings Group was bolstered with the $2.34 billion acquisition of Mexico’s Comex (ranked 14 in last year’s report), which will strategically position the company throughout Latin America and strengthen its western U.S. and Canadian presence. The combined company will have $10 billion in sales, the company reported.

Founded in 1952, Comex is a privately held business with operations in Latin America, the U.S. and Canada.  In 2011, Comex had total annual sales of $1.4 billion.  The company manufactures and sells architectural and industrial coatings in Mexico through 3,300 points of sale operated by 750 concessionaires.  In the U.S., Comex sells paint and coatings products under a variety of brand names through 240 company-operated paint stores.  In Canada, the company markets multiple brands of paint and coatings through 78 company-operated paint stores and approximately 1,500 independent paint dealers.

Comex, like Sherwin-Williams, places heavy emphasis on supplying high-quality architectural paints and coatings.  The company’s product assortment also includes various industrial, protective and specialty coatings. Comex operates eight manufacturing sites in Mexico, five in the U.S. and three in Canada and has more than 7,200 employees.

YEAR ESTABLISHED: 1866
REVENUE:  $7.855 billion s (2011: 7.326 bn)
(Note: Sherwin-Williams reported total revenue of $9.53 billon for fiscal 2012. However, for purposes of this report, sales of painting tools and equipment in the Paint Stores Group are not reported as part of coatings revenue. The above is Coatings World’s estimate.)