Mexico City, Mexico - The Sherwin-Williams Company, global leader in coatings and related products, has agreed to acquire Mexican paint firm Consorcio Comex SA de C.V. for about $2.34 billion, to gain Mexico’s largest paint maker as housing demand improves.

Sherwin-Williams will fund the all-cash deal by selling $2 billion in 5, 10, and 30-year bonds, the Cleveland-based company said on its website.

While the transaction is still subject to US, Mexican, and Canadian regulatory approval, Sherwin-Williams Chairman and Chief Executive Officer Christopher M. Connor is anticipating adding to the company’s 3,500 North American stores after an improving North American housing market led to record earnings in the third quarter.

Comex, which was founded in 1952 and had total sales last year of $1.4 billion, has exclusive sales to 3,300 paint stores in Mexico and has more than 7,200 employees. It sells to almost 1,600 stores in Canada and operates 240 stores in the US, producing paint for construction and industrial uses at 16 plants, including five in the US and three in Canada.

"I am confident that joining the Sherwin-Williams family will provide an outstanding future for our employees and customers," stated Comex Group CEO Marcos Achar. "The collaboration strengthens Comex for its future growth.

"Sherwin-Williams and Comex Group are an ideal fit in every respect – geographically, strategically, and culturally, the head of the Ohio-based giant said. "This transaction will significantly increase our presence in markets where our store count is low, it builds upon our strategy to grow our architectural paint business in the Americas, and it brings a high-quality, dedicated team of employees to Sherwin-Williams."

Sales of existing homes in Mexico are improving faster than new homes, Carlos Hermosillo, an analyst covering builders for Grupo Financiero Banorte SAB, said in a telephone interview from Mexico City. "That makes an investment in this sector very interesting, as the outlook for paint sales is very positive due to increased remodeling of existing homes.