PHILADELPHIA--(BUSINESS WIRE)--
Axalta Coating Systems (NYSE:AXTA), a leading global supplier of liquid
and powder coatings, announced today that it has entered into a
definitive agreement with The Valspar Corporation (NYSE:VAL) and The
Sherwin-Williams Company (NYSE:SHW) 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,” 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. Our shared commitment to technology and
excellence in application services, as well as a strong pipeline of new
products, will enable us to meet the needs of both current and new
customers. This acquisition continues to build on our strategy to
strengthen and further diversify our Performance Coatings segment.”
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. 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.
About Axalta Coating Systems
Axalta 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. For more information visit axaltacoatingsystems.com
and follow us @axalta on Twitter and on LinkedIn.
Cautionary Statement Concerning Forward-Looking Statements
This release may contain certain forward-looking statements regarding
Axalta and its subsidiaries including those relating to the timing and
expected benefits of Axalta’s acquisition of The Valspar Corporation’s
North American Industrial Wood Coatings business. Forward-looking
statements are based on management’s expectations as well as estimates
and assumptions prepared by management that, although they believe to be
reasonable, are inherently uncertain. These statements may involve risks
and uncertainties, including, but not limited to, the satisfaction of
the closing conditions of the transaction (including the Valspar and
Sherwin-Williams merger as well as regulatory approvals); the parties’
ability to consummate the transaction on the anticipated terms and
schedule; and Axalta’s ability to achieve the expected benefits of the
acquisition. Axalta undertakes no obligation to update or revise any of
the forward-looking statements contained herein, whether as a result of
new information, future events or otherwise.
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Source: Axalta Coating Systems