Sherwin-Williams has completed the acquisition of Minneapolis-based paint and coatings manufacturer Valspar for $11.3bn.
The combined company will have its corporate headquarters in Cleveland, Ohio, with a pro forma 2016 revenues of about $15.8bn and has about 60,000 associates worldwide.
Sherwin-Williams has a better market position in architectural paint in the markets of North America, South America, China, Australia and the UK.
The company claims that the combined firm will be a global market leader in packaging coatings, coil coatings, general industrial coatings and wood coatings.
Sherwin-Williams said that the acquisition can help in achieving $320m in annual run-rate synergies in the areas such as sourcing, SG&A and process efficiency savings in three years of time.
It also expects that the transaction can be immediately accretive to earnings (excluding one-time costs) and to meaningfully increase its operating cash flow.
The company said it will provide an outlook on the combined company for the third quarter and full year 2017 when it releases financial results for the second quarter by the end of this month.
Sherwin-Williams chairman, president and CEO John G. Morikis said: "We are pleased to complete this transaction, and I would like to officially welcome our new colleagues from Valspar and the tremendous talent they bring to Sherwin-Williams. The acquisition of Valspar accelerates Sherwin-Williams’ global growth strategy and creates the global leader in paints and coatings.
“The combination of these two companies creates a world class brand portfolio, expanded product range, premier technology and innovation platforms and an extensive global footprint. These enhanced capabilities will benefit our customers and create sustainable long-term value for our shareholders."