Painting by (Financial) Numbers: The Acquisition of Valspar by Sherwin-Williams

This decision-based case is concerned with the proposed acquisition agreement of The Valspar Corporation by The Sherwin-Williams Company. The acquisition would create the largest firm in the global paints and coatings industry. The acquisition also contained an uncommon price contingency in case antitrust regulators mandated asset divestitures. The acquisition benefited the Valspar shareholders, but the Sherwin-Williams shareholders could not be sure that the transaction produced any value. The students are placed in the role of the Sherwin-Williams’ shareholders, and they need to assess whether the acquisition created value for their investment.