Sherwin-Williams has announced an agreement to acquire BASF’s decorative paints business in Brazil for $1.15 billion in cash. The deal, made through its wholly owned subsidiary, Sherwin-Williams do Brasil Indústria e Comércio Ltda., involves a carve-out process in which BASF will transfer all relevant assets, contracts, and employees into a new entity before completion.

The acquisition is subject to Brazilian antitrust approval and other customary closing conditions. If approval is not obtained within 18 months, the deal may be terminated, with Sherwin-Williams required to pay an 8% termination fee in such a scenario. Both Sherwin-Williams and BASF have provided guarantees for their respective obligations under the agreement.

This acquisition strengthens Sherwin-Williams’ presence in South America, particularly in the Brazilian market, and aligns with its strategy of expanding in high-growth regions.