Valspar, Lilly Near Completion of Merger
MINNEAPOLIS - The Valspar Corp. and Lilly Industries Inc. completed the merger of the two companies, following approval of the transaction by the U.S. Federal Trade Commission (FTC).
As a condition of FTC approval of the deal, Minneapolis-based Valspar has agreed to divest its existing mirror-coatings business, which the company described as a “non-strategic product line” with annual sales of approximately $12 million. When announced in June 2000, the merger was valued at nearly $1 billion, based on Valspar’s purchase of all of Lilly’s outstanding shares for $31.75 per share. Lilly shareholders approved the merger in September.
The merger creates one of the world’s biggest producers of industrial coatings and packaging coatings, with major positions in coatings for furniture, agricultural and construction equipment, and other markets.
Valspar Chairman, President and CEO Richard M. Rompala called the companies an “extraordinarily good strategic fit” that will join to form “the world leader in non-automotive industrial coatings and packaging coatings, with one of the broadest product lines in the industry.” He said Valspar will pursue a rapid integration of the two companies’ operations, and said Valspar anticipates “significant synergies by combining our coatings businesses.”
Following the merger, Valspar’s annual sales will total approximately $2.25 billion, making the company the seventh-largest coatings manufacturer worldwide.