The Sherwin-Williams Company (NYSE: SHW) has signed a purchase agreement with global coatings company Akzo Nobel N.V. (AKZO.AS) to divest its China architectural paint business. The business manufactures and sells decorative paints under the Huarun® brand name in China, has annual revenue of approximately $100 million USD and employs approximately 300 people. The transaction is expected to close in the second half of 2023, pending customary regulatory approvals.

"The divestiture of our China architectural paint business aligns with our ongoing strategy to optimize our portfolio, brands and customer programs to drive continued value for our shareholders," said Sherwin-Williams Chairman and Chief Executive Officer, John G. Morikis. "We are confident our resources can be better prioritized to other areas of our Company to offer greater growth and higher returns and cash flow. We remain committed to growing our industrial coatings business in the region, and we thank the employees of the architectural paint business for their contributions to Sherwin-Williams."

The architectural paint business being divested became part of Sherwin-Williams through the 2017 acquisition of The Valspar Corporation and was previously reported in the Sherwin-Williams Consumer Brands Group.