Sherwin-Williams Clears Way to Valspar Purchase With Divestiture

Sherwin-Williams Co. took a major step toward closing its $9.3 billion purchase of Valspar Corp. by agreeing to sell a wood-coatings business, a move meant to satisfy antitrust regulators reviewing a deal that would create the world’s largest paintmaker.

Axalta Coatings Systems Ltd. plans to acquire the Valspar unit for $420 million, contingent on completion of the Sherwin transaction, the companies said April 12. The business, Valspar Wood, supplies North American makers of building products, cabinets, flooring and furniture, and generated $225 million in revenue last year.

Buying Valspar would help Cleveland-based Sherwin leapfrog PPG Industries Inc. and Akzo Nobel ...