Axalta Coating Systems (NYSE: AXTA) has made an agreement with The Valspar Corp. (NYSE: VAL) and The Sherwin-Williams Co. (NYSE: SHW) to acquire Valspar’s North American industrial wood coatings business. The deal, valued at approximately $420 million in cash, comes in connection with the reviews by the Federal Trade Commission and Canadian Competition Bureau regarding Sherwin-Williams’ proposed acquisition of Valspar.
Valspar’s North American industrial wood coatings business, currently known as Valspar Wood, is a provider of coatings for the original equipment manufacturer (OEM) and aftermarket industrial wood industries. The target’s coatings are used on building products, cabinets, flooring and furniture materials in North America. The business generated $225 million in revenue in 2016, and operates using a variety of brand names, including: Zenith, Lustre Lac and Graintone.