PHILADELPHIA - Axalta Coating Systems (NYSE: AXTA) says it completed its previously announced acquisition of The Valspar Corporation’s (NYSE: VAL) 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 purchase is subject to certain adjustments. Valspar North America had net sales of approximately $225 million in 2016. Axalta expects the transaction to be accretive to earnings in the first full year, but near-term results will be affectd by integration costs to be incurred largely in 2017.
Axalta says its North American Industrial Wood Coatings business is one of the leading providers of coatings for OEMs and distributors engaged in industrial wood markets, including building products, cabinets, flooring and furniture, in North America. The strong brands of the business, which include Zenith, Ultraguard, Lifeshield and Color Choice, will join Axalta’s portfolio of Performance Coatings products and services.
A shared commitment to customer care, technical service and support, as well as a keen focus on innovation in advancing the technology of wood coatings will provide a strong platform for future growth in this important industrial coatings market. The business consists of manufacturing facilities and offices in High Point, North Carolina and Cornwall, Ontario, an R&D organization with locations in High Point and Minneapolis, Minnesota, and sales representatives located throughout the U.S. and Canada.
Axalta Coating Systems is a leading global company focused solely on coatings and providing customers with innovative, colorful, beautiful and sustainable solutions. From light OEM vehicles, commercial vehicles and refinish applications to electric motors, buildings and pipelines, our coatings are designed to prevent corrosion, increase productivity and enable the materials we coat to last longer. With more than 150 years of experience in the coatings industry, the approximately 13,000 people of Axalta continue to find ways to serve our more than 100,000 customers in 130 countries every day with the finest coatings, application systems and technology.