Axalta Coating Systems, a global supplier of liquid and powder coatings, completed its previously announced acquisition of the 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 Co.
The purchase price for the transaction is $420 million, 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 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 brands of the business, which include Zenith, Ultraguard, Lifeshield and Color Choice, 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, and sales representatives located throughout the U.S. and Canada.