March 10, 2017—Minneapolis-based Valspar reported quarterly earnings reflecting the challenges that will likely lead to a $11.3 billion merger agreement with Sherwin-Williams by May, the Minneapolis Star Tribune reports.
Compared with the same period a year ago, sales rose 2.5 percent to $907.7 million for the quarter ended Jan. 27, but profits fell 22 percent to $40.7 million, the company said Wednesday. Eating into profits were higher costs for research and product ingredients as well as employee severance packages connected with the sale.
The merger, originally announced in March 2016, will create a paint and coatings firm with $15.9 billion in combined revenue and 58,000 global employees. Valspar will become a wholly owned subsidiary of Sherwin-Williams, according to Wednesday’s report.
Company officials said more details will be made public as time, approvals and plans progress.