Axalta Acquires Valspar’s North American Industrial Wood Coatings Business
June 5, 2017
Axalta Coating Systems has completed its previously announced acquisition of Valspar Corporation’s North American Industrial Wood Coatings business. Valspar divested the business in connection with the antitrust approval of its acquisition by The Sherwin-Williams Company.
The $420 million transaction is subject to certain adjustments set forth in the Asset Purchase Agreement. The acquired business had net sales of approximately $225 million in 2016. Axalta expects the transaction to be accretive to earnings in the first full year, but less accretive to near-term results, including the anticipated integration costs to be incurred largely in 2017.
The North American Industrial Wood Coatings business provides coatings for OEMs and distributors engaged in industrial wood markets, including building products, cabinets, flooring and furniture, in North America. The brands of the business will join Axalta’s portfolio of Performance Coatings products and services. The business consists of manufacturing facilities and offices in High Point, N.C. and Cornwall, Ontario, an R&D organization with locations in High Point and Minneapolis, Minn., and sales representatives throughout the United States and Canada.