Leading global supplier of liquid and powder coatings, Axalta Coating Systems announces its planned acquisition of The Valspar Corporation’s North American Industrial Wood Coatings business. Axalta has entered into a definitive agreement with The Valspar Corporation and The Sherwin-Williams Company to acquire the assets of the business for $420 million in cash.

Valspar’s divestment follows reviews by the Federal Trade Commission (FTC) and Canadian Competition Bureau (CCB) of the proposed acquisition of Valspar by Sherwin-Williams.

Known in the market as Valspar Wood, North American Industrial Wood Coatings had revenues of approximately $225 million in 2016. One of the leading providers of coatings for OEM and aftermarket industrial wood markets, including building products, cabinets, flooring and furniture in North America, the business has a number of widely known and respected brands including Zenith, Lustre Lac and Graintone, among others, all backed by strong R&D and best-in-class customer service.

Axalta Chairman and CEO, Charlie Shaver believes the acquisition presents an excellent opportunity for Axalta to enter the large industrial wood coatings market with an industry-leading portfolio of products and customers. Observing that the strong reputation of the brands within a long-term customer base will provide a great platform for future growth in this important market, he notes that their shared commitment to technology and excellence in application services, as well as a strong pipeline of new products, will enable the company to meet the needs of both current and new customers.

Mr Shaver adds that the acquisition continues to build on their strategy to strengthen and further diversify their Performance Coatings segment. 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.