Axalta to Acquire Wood Coatings Business
April 24, 2017
Axalta Coating Systems has entered into a definitive agreement with The Valspar Corporation and The Sherwin-Williams Company to acquire the assets of 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 as a provider of coatings for OEM and aftermarket industrial wood markets, including building products, cabinets, flooring, and furniture in North America.
“This is an outstanding opportunity for Axalta to enter the large Industrial Wood Coatings market with an industry—leading portfolio of products and customers,” said Axalta chairman and CEO, Charlie Shaver. “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.”
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. The transaction is subject to the closing of the Valspar and Sherwin-Williams merger, as well as customary closing conditions and regulatory approvals, including the approval of the FTC and the CCB. Axalta has secured a financing commitment for the transaction through Deutsche Bank AG New York Branch, subject to customary closing conditions. Centerview Partners LLC acted as financial advisor to Axalta.