The Sherwin-Williams Company and The Valspar Corporation have entered into a definitive agreement with Axalta Coating Systems to sell the assets related to Valspar’s North American Industrial Wood Coatings business to Axalta for $420 million in cash.
Ty Valspar’s North American Industrial Wood Coatings 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.
The companies are 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.
John G. Morikis, Chairman, President and Chief Executive Officer of Sherwin-Williams, said, “With this agreement, we believe that we have addressed regulatory concerns appropriately and we are moving forward to obtain approval for our acquisition of Valspar.”
The sale of Valspar’s North American Industrial Wood Coatings business to Axalta 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. JP Morgan acted as financial advisor to Sherwin-Williams.
