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Sherwin-Williams Acquires Specialty Polymers, Addresses Supply Challenges
September 29, 2021

Global paint and coatings company Sherwin-Williams said during its Q3 earnings guidance update that it has signed an agreement to acquire Specialty Polymers Inc, a manufacturer and developer of water-based polymers used in architectural and industrial coatings.

Specialty Polymers operates production facilities in Woodburn, OR, and Chester, SC with approximately 150 employees, and will add to Sherwin-Williams existing internal resin manufacturing capability.

"In addition to Specialty Polymers' significant current capacity, we see the opportunity to add millions of pounds of additional capacity to its footprint in the near term with relatively minimal investment," said Sherwin-Williams Chairman, President and CEO, John Morikis.

The transaction is expected to close by the end of 2021. Revenue of the Specialty Polymers was approximately $112 million for the year ended December 31, 2020, inclusive of sales to Sherwin-Williams as a manufacturer of proprietary polymers.

Morikis also said during the guidance update that his company was still seeing significant industry-wide supply challenges, which have worsened, as it does not expect to see improved supply or lower raw material pricing in Q4 as anticipated. The company also said its suppliers are reporting that the impacts of Hurricane Ida are more severe and will be longer lasting than initially thought.

"Production of several key resins, additives and solvents, expected to resume by late September, has been pushed out," Morikis noted. "We now expect raw material availability issues to negatively impact our consolidated sales by a high-single digit percentage in the fourth quarter."

Sherwin-Williams added it continues to partner closely with suppliers to improve supply while employing all its assets to reduce the impact on our customers.

By Brian Balboa for The Plastics Exchange.

For LinkedIn

Sherwin-Williams acquisition of Speciality Polymers is expected to close by the end of the year. The acquisition of the company comes as Sherwin-Williams continues to face supply challenges.

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