The Sherwin-Williams Company SHW entered into a definitive agreement with BASF Group to acquire the latter’s Brazilian architectural paints business (‘Suvinil”) for $1.15 billion in an all-cash transaction. This unit of BASF is a leading provider of architectural paints in Brazil, with sales of roughly $525 million for the year ended Dec. 31, 2024.

The BASF unit has expertise in developing, manufacturing and selling a comprehensive portfolio of innovative products under the well-known brand names: “Suvinil” and “Glasu!”. The company employs about 1,000 employees and operates two production facilities strategically located in the Northeast and Southeast regions of Brazil. 

This strategic move will accelerate profitable above-market growth in that region by providing industry-leading solutions, SHW noted. As the Suvinil business is highly complementary to SHW, Suvinil’s name and quality will help Sherwin-Williams capitalize on growth opportunities through continuous improvement and innovation. 

The transaction is expected to close in the second half of 2025. SHW plans to fund the transaction through a combination of cash on hand, liquidity available under existing facilities and new debt.

The SHW stock has gained 15.4% in the past year against the 17.8% decline in the industry.

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SHW’s Zacks Rank and Key Picks    

SHW currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Ingevity Corporation NGVT, Carpenter Technology Corporation CRS and Methanex Corp. MEOH. While NGVT sports a Zacks Rank #1 (Strong Buy), CRS and MEOH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $2.75 per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 95.4%. 

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.83 per share. CRS beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 15.7%. Its shares have soared 186.3% in the past year.

The Zacks Consensus Estimate for Methanex’s current-year earnings is pegged at $4.2 per share. MEOH surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 85.2%. 

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The Sherwin-Williams Company (SHW) : Free Stock Analysis Report

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