Sherwin-Williams is set to expand its footprint in Latin America with a $1.15 billion acquisition of BASF’s Brazilian decorative paints business, including the well-known Suvinil brand. The deal, announced by both companies, is expected to close in the second half of 2025 pending regulatory approval.

The acquisition includes two production sites, the Suvinil and Glasu! brands, and approximately 1,000 employees. Suvinil, a market leader in Brazil, generated about $525 million in sales in 2024 and is known for its extensive portfolio of architectural paints, coatings, and digital solutions.

“This acquisition accelerates our profitable growth in Brazil and strengthens our ability to deliver innovative coatings solutions,” said Heidi G. Petz, Chair, President, and CEO of Sherwin-Williams. “Suvinil is a highly respected brand, and we look forward to leveraging its strong market presence alongside Sherwin-Williams’ expertise.”

BASF framed the sale as part of its strategic portfolio realignment. “The signing marks an important step in unlocking the value of our standalone businesses,” said Anup Kothari, a member of BASF’s Board of Executive Directors. “We are confident that Suvinil will continue to thrive under Sherwin-Williams’ leadership.”

Sherwin-Williams plans to integrate Suvinil into its Consumer Brands Group, maintaining business continuity while pursuing growth and operational efficiencies. The transaction will be financed through a mix of cash and debt, with Sherwin-Williams’ net-debt-to-EBITDA ratio expected to remain within its target range.

Both companies will operate independently until the deal closes. Meanwhile, BASF plans to explore strategic options for its remaining coatings businesses, including automotive OEM and refinish coatings.