 "Axalta to buy Valspar's North American wood coatings business for $420 mn")
Axalta Coating Systems, one of the leading global suppliers of liquid and powder coatings, has entered into a definitive agreement with Valspar Corporation and Sherwin-Williams Company to acquire the assets related to Valspar’s North American industrial wood coatings business for $ 420 million in cash.
Valspar is divesting the business in connection with the reviews by the Federal Trade Commission (FTC) and Canadian Competition Bureau (CCB) of the proposed acquisition of Valspar by Sherwin-Williams. The business had revenues of approximately $ 225 million in 2016 and is one of the leading providers of coatings for OEM and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture in North America.
Known in the market today as Valspar Wood, the business has a number of widely known and respected brands including Zenith, Lustre Lac and Graintone, among others. These products are backed by a strong R&D and technology organization and best-in-class customer service.
“This is an outstanding opportunity for Axalta to enter the large Industrial Wood Coatings market with an industry-leading portfolio of products and customers. The strong reputation enjoyed by these brands among a long-term customer base will provide an excellent platform for future growth in this important market. This acquisition continues to build on our strategy to strengthen and further diversify our Performance Coatings segment,” said Charlie Shaver, chairman and CEO, Axalta.
Axalta intends to operate this business as a pure bolt-on. As part of the transaction, Axalta will acquire the personnel, both dedicated manufacturing sites, R&D assets and the underlying intellectual property of Valspar’s North American industrial wood coatings business.
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