1. The Sherwin-Williams Co.

Cleveland, OH

216/566.2000

Chairman/CEO in 2023:   John G. Morikis (currently Chairman)

President/COO in 2023: Heidi G. Petz (currently CEO)

www.sherwin-williams.com

2023 Coatings Sales: Approx. $18.44 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 Paint Stores Group, the Consumer Brands Group, and the Performance Coatings Group.

Sherwin-Williams reported total consolidated sales for 2023 of approximately $23.05 billion. It is estimated that approximately 80% of sales, or about $18.44 billion, represents coatings sales, with the remainder being related to products such as floor coverings, application supplies, and wallcoverings. The Paint Stores Group reported a net sales increase of 7.3% to $12.8 billion in 2023, which accounts for 56% of total 2023 sales for the company. Net sales in the Consumer Brands Group decreased 0.7% in 2023 to $3.4 billion. This accounts for 14% of 2023 total sales. The Performance Coatings Group reported a 0.7% increase in net sales in 2023 to $6.8 billion. Performance Coatings Group sales represent 30% of total sales for 2023.

The Paint Stores Group operates the exclusive outlets for Sherwin-Williams®-branded paints, stains, supplies, equipment and floor covering in the United States, Canada, and the Caribbean region. Products sold in this group include paints, stains, aerosols, applicators, caulks, varnishes, protective and marine coatings, spray equipment, and related products in the United States, Canada and the Caribbean. Wall covering and floor coverings in the United States, Canada and the Caribbean. Brands include Sherwin-Williams®, A-100®, Builders Solution®, Captivate®, Cashmere®, Duration®, Emerald®, Gallery Series™, Kem Tone®, Latitude®, Loxon®, Metalatex®, Novacor®, Painters Edge Plus™, ProClassic®, ProCraft®, Pro Industrial™, ProMar®, Scuff Tuff®, SuperDeck®, SuperPaint®, and Woodscapes®. The Group operates 4,694 Sherwin-Williams paint stores in the United States, Canada, and the Caribbean.

The Consumer Brands Group sells branded and private-label products through retailers and distributors in North America and Europe. Products sold in this group include branded, private-label and licensed brand paints, stains, varnishes,     industrial products, wood finishing products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks and adhesives, and related products. Brands include Cabot®, Colorgin®, Condor®, Dupli-Color®, Dutch Boy®, Geocel®, HGTV HOME® by Sherwin-Williams, Krylon®, Minwax®, Purdy®, Ronseal®, Sherwin-Williams®, Thompson’s® WaterSeal®, Valspar®, and White Lightning®. The group has over 10,000 points of distribution with leading mass merchandisers, home centers, independent paint dealers, hardware stores, craft stores, fine art stores, automotive retailers and industrial distributors in the United States, Canada, and Europe. There are 318 Sherwin-Williams paint stores in Brazil, Chile, Ecuador, Mexico, and Uruguay, as well asdedicated dealers, home centers, distributors, and hardware stores in Argentina, Brazil, Chile, Ecuador, Mexico, and Uruguay. A licensee in El Salvador serves Central America.

The Performance Coatings Group sells coatings and finishing solutions to customers in the general industrial, industrial wood, protective and marine, automotive refinish, packaging, and coil markets. Brands include Sherwin-Williams®, Acrolon®, AcromaPro®, ATX®, DeBeer Refinish®, Duraspar®, EcoDex®, Envirolastic®, Excelo®, EzDex®, Fastline®, Firetex®, Fluropon®, Gross & PerthunTM, Heat-Flex®, House of Kolor®, Huarun®, ICA, Inver®, Kem Aqua®, Klumpp CoatingsTM, Lazzuril®, Macropoxy®, Martin Senour®, Matrix Edge®, M.L. Campbell®, Octoral®, Oskar NolteTM, Perma-Clad®, Polane®, Powdura®, Sayerlack®, Sher-Wood®, Sumaré®, Ultra 9K®, Ultra 7000®, ValPure®, and Valspar®. Company-operated branches and facilities serve automotive, general industrial, industrial wood, and coil customers 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.

Notes: The Sherwin-Williams Company has continued its “The Building Our Future” project consisting of a new global headquarters located in downtown Cleveland, and a research and development center located in Brecksville, Ohio. The new headquarters will offer more opportunities to celebrate the Sherwin-Williams brand, as well as act as a catalyst for future development in and around its new campus. The R&D center will be responsible for product development, coatings research, color technology, and process engineering. The new facilities will house more than 4,000 employees made up of professional staff, engineers, technicians, and chemists, with room to accommodate future growth. The transition to the new facilities is expected to occur by the end of 2024. In July 2023, the company, along with the project’s construction workers, celebrated a ‘topping-off’ with the placement of the final steel beam for the R&D center. This milestone marked the completion of the construction project’s structural work, a project that began with a groundbreaking ceremony in October of 2021.

In April of 2023, the company completed the divestiture of a non-core domestic aerosol business within the Consumer Brands Group. The business manufactures and sells decorative paints under the Huarun® brand name in China, has annual revenue of approximately $100 million USD and employs approximately 300 people. The business was sold to AkzoNobel.

On August 7, 2023, Sherwin-Williams reported an explosion at its manufacturing facility in Garland, Texas, which resulted in a fire. One employee had minor injuries, and there were no fatalities. The source of the fire was unknown, but likely started near the utility and resin manufacturing area of the building. As a result, the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) assessed $290,358 in proposed penalties for the company.

In October 2023, The Sherwin-Williams Company announced that its Board of Directors elected Heidi G. Petz to serve as the Company's next Chief Executive Officer (CEO), effective January 1, 2024. Petz served as President and Chief Operating Officer of Sherwin-Williams for the last two years. After serving as CEO since 2016, John G. Morikis will continue 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.

Also in October 2023, the company completed the acquisition of German-based SIC Holding GmbH, a Peter Möhrle Holding venture comprised of Oskar Nolte GmbH and Klumpp Coatings GmbH (SIC Holding). This business specializes in foil coatings as well as radiation-cured and water-based industrial wood coatings for the board, furniture, and flooring industries. The company funded the acquisition with approximately $265 million in cash. The purchase price is subject to certain closing conditions which are expected to be finalized in 2024. As of December 31, 2023, $110.8 million of finite-lived intangible assets, $154.2 million of goodwill, $46.1 million of other assets, net of cash and $46.7 million of liabilities were recognized from this transaction.

Source: Annual Report, company website, press releases, www.reuters.com, www.wfaa.com