Fifty shades of green

12 November 2012 By Raul Gallegos

The U.S. paint maker is splashing out $2.3 bln for Mexican rival Comex. Expected cost savings are worth about $500 million, and yet the market added almost twice as much to Sherwin-Williams’ value. It’s a testament to optimism about the region despite some signs of sluggishness.

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Sherwin-Williams, the top U.S. paint maker, said on Nov. 12 it plans to buy privately held Mexican rival Consorcio Comex for about $2.3 billion in cash. Shares of Sherwin-Williams were up nearly 6 percent in afternoon trading on the New York Stock Exchange.

The U.S. company, maker of its own namesake brand as well as Dutch Boy, Krylon and others, operates about 4,000 paint stores in the United States, Canada, Puerto Rico and Virgin Islands. Comex makes and sells paint in 3,300 outlets in Mexico. It also sells its products under a variety of brand names through 240 company-run paint stores in the United States and 78 company-operated paint stores and about 1,500 independent paint dealers in Canada.

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