1. The Sherwin-Williams Co.

Cleveland

216/566.2000

Chairman and CEO: John G. Morikis

President and COO: Heidi G. Petz

www.sherwin-williams.com

2022 Coatings Sales: Approx. $17.72 billion

The Sherwin-Williams Co. was founded in 1866 by Henry Sherwin and Edward Williams. The company provides coatings and related products to professional, industrial, commercial, and retail customers in paint stores in the United States, Canada, and the Caribbean. Employing approximately 64,000 people, Sherwin-Williams is organized into three segments: the Americas Group, the Consumer Brands Group, and the Performance Coatings Group.

The Americas Group operates the Sherwin-Williams branded paints, stains, supplies, equipment, and floor coverings in the United States, Canada, the Caribbean, and Latin America. Products sold through this group include paint, stains, aerosols, caulks, varnishes, protective and marine coatings, applicators, and spray equipment in the United States, Canada, the Caribbean, and Latin America; wall and floor coverings in the United States, Canada, and the Caribbean; and OEM product finishes in Latin America. Brands include Sherwin-Williams®, A-100®, Builders Solution®, Captivate®, Cashmere®, Colorgin®, Condor®, Duration®, Emerald®, Kem Tone®, Latitude®, Loxon®, Metalatex®, Novacor®, Painters Edge Plus™, ProClassic®, ProCraft®, Pro Industrial™, ProMar®, SuperDeck®, SuperPaint®, and Woodscapes®. The Americas Group operates 4,624 Sherwin-Williams paint stores in the United States, Canada, and the Caribbean, and 307 in Argentina, Brazil, Chile, Ecuador, Mexico, and Uruguay.

The Consumer Brands Group sells branded and private-label products through retailers in North America, Europe, and China. Customers include professional painting contractors, DIY painters, industrial maintenance providers, and commercial roofing and flooring contractors. Products sold in this group include paints, stains, varnishes, industrial products, wood finishing products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks and adhesives, and related products. Brands include Cabot®, Dupli-Color®, Dutch Boy®, Geocel®, HGTV HOME® by Sherwin-Williams, Huarun®, Krylon®, Minwax®, Purdy®, Ronseal®, Thompson’s® WaterSeal®, Valspar® and White Lightning®. The group serves customers in the United States, Canada, Europe, and China through over 10,000 distribution points.

The Performance Coatings Group sells coatings and finishes to customers in the general industrial, industrial wood, protective and marine, coil and extrusion, packaging, and automotive coatings markets. Brands include Sherwin-Williams®, Acrolon®, AcromaPro®, ATX®, DeBeer Refinish®, Duraspar®, EcoDex®, Envirolastic®, Excelo®, EzDex®, Fastline®, Firetex®, Fluropon®, Heat-Flex®, House of Kolor®, Huarun®, Inver®, Kem Aqua®, Lazzuril®, Macropoxy®, Martin Senour®, Matrix Edge®, ML Campbell®, Octoral®, Perma-Clad®, Polane®, Powdura®, Sayerlack®, Sher-Wood®, Sumaré®, Ultra 9K®, Ultra 7000®, ValPure®, and Valspar®. The group operates branches and facilities in the United States, Australia, Belgium, Brazil, Canada, Chile, China, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Ireland, Italy, Lithuania, Malaysia, Mexico, Norway, Peru, Poland, Portugal, Romania, Singapore, Spain, Sweden, Thailand, Ukraine, United Kingdom, and Vietnam, with distribution in other countries.

Sherwin-Williams reported total consolidated sales for 2022 of approximately $22.15 billion. It is estimated that approximately 80% of sales, or about $17.72 billion, represents coatings sales, with the remainder being related to products such as floor coverings, application supplies, and wallcoverings. The Americas Group reported a net sales increase of 12.9% to $12.7 billion in 2022, which accounts for 57% of total 2022 sales for the company. Net sales in the Consumer Brands Group decreased 1.1% in 2022 to $2.7 billion. This accounts for 12% of 2022 total sales. The Performance Coatings Group reported a 13.2% increase in net sales in 2022 to $6.8 billion. Performance Coatings Group sales represent 31% of total sales for 2022.

Notes:

In January of 2022, The Sherwin-Williams Co. held a virtual celebration to mark the official start of construction for the company's new global headquarters. The 1,000,000-square-foot facility will be located in downtown Cleveland, Ohio, and is part of the company's comprehensive Building Our Future project, which also includes construction of the Research & Development (R&D) Center in Brecksville, Ohio, which broke ground in October 2021. Sherwin-Williams plans to invest a minimum of $600 million to build both the headquarters and R&D facility.

In February of 2022, the company announced that it 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. Sherwin-Williams reported 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. In October, the company held a groundbreaking ceremony to mark the start of construction of a 36,000-square-foot extension of its existing 200,000-square-foot manufacturing facility and new 800,000-square-foot distribution and fleet transportation center.

In 2022, Sherwin-Williams also announced several acquisition agreements including:

•  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.
•  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.
•  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 industries. 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 completed acquisition of the European industrial coatings business of Sika AG, which will become part of the company's Performance Coatings Group operating segment. Approximately 115 Sika employees have joined Sherwin-Williams.

Source: Annual Report, company website, press releases