06:29 AM EST, 02/18/2025 (MT Newswires) -- Sherwin-Williams ( SHW ) agreed to acquire German chemical giant BASF Group's architectural paints business in Brazil in an all-cash deal worth about $1.15 billion.

The transaction, which requires approval from regulators, is expected to be completed in the second half of the year, the companies said in separate statements Monday. Sherwin-Williams ( SHW ) aims to finance the acquisition through a combination of cash on hand, liquidity available under existing facilities and new debt.

The business, which generated sales of about $525 million in 2024, develops and sells paints and paint preparation products under the Suvinil and Glasu! brands across Brazil. The transaction is structured as a share deal and includes the production facilities in the Northeast and Southeast regions of the country, as well as the division's roughly 1,000 employees, according to the companies.

"Suvinil is a premier provider of architectural paints in Brazil and will accelerate our commitment to provide industry-leading solutions for our customers while delivering profitable above-market growth in the region," Sherwin-Williams ( SHW ) Chief Executive Heidi Petz said in a statement. "The business is highly complementary to Sherwin-Williams ( SHW ) in Latin America."

Suvinil is expected to become part of Sherwin-Williams' ( SHW ) consumer brands group upon completion of the deal, the company said. The paint manufacturer aims to expand the brand's earnings before interest, taxes, depreciation and amortization margin, excluding one-time integration expenses, through its growth strategy and "continuous improvement disciplines," according to Petz.

Last month, Sherwin-Williams ( SHW ) reported fourth-quarter sales of nearly $5.3 billion, up from $5.25 billion in the prior-year quarter. Revenue in the consumer brands business declined 4.3% year over year to $662.2 million, mainly due to a 5.5% foreign-exchange headwind in Latin America, the company said at the time.

"The signing marks an important step in unlocking the value of our standalone businesses," Anup Kothari, a member of BASF's board of executive directors, said. "We are convinced that the decorative paints business will continue to thrive as part of Sherwin-Williams ( SHW )."