PHILADELPHIA - Axalta Coating Systems has entered into a definitive agreement with The Valspar Corp. and The Sherwin-Williams Co. 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.