International. Axalta has completed its previously announced acquisition of The Valspar Corporation's North American Industrial Wood Coatings Corporation. Valspar divested the business in connection with the antitrust approval of its acquisition by The Sherwin-Williams Company.
The purchase price of the transaction is US$420 million, subject to certain adjustments set forth in the Asset Purchase Agreement. The acquired business had net sales of approximately US$225 million in 2016. Axalta expects the transaction to increase profits in the first full year, but fewer short-term results, including anticipated integration costs that will be largely incurred in 2017.
The North American Industrial Wood Coatings business is one of the leading suppliers of coatings to OEMs and distributors dedicated to the industrial wood markets, including construction products, cabinets, flooring and furniture, in North America.
The business consists of manufacturing facilities and offices in High Point, North Carolina and Cornwall, Ontario, an R&D organization with locations in High Point and Minneapolis, Minnesota, and sales representatives located in the United States and Canada.
