Axalta scoops up Valspar's coatings business

Sherwin-Williams and Valspar have agreed to sell the assets of Valspar's North American Industrial Wood Coatings business to Axalta for $420 million in cash.

The divestment is part of a move meant to smooth the process of the proposed acquisition of Valspar by Sherwin-Williams, according to the review by the Federal Trade Commission (FTC) and Canadian Competition Bureau (CCB).

"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," said Sherwin-Williams president and CEO John Morikis.

The wood coatings business -- a provider of coatings for OEM and aftermarket Industrial Wood markets -- had revenues of approximately $225 million in 2016.

"We believe that Axalta is an excellent buyer for our North American Industrial Wood Coatings business and will provide great opportunities for our talented employees," said Valspar chairman and CEO Gary Hendrickson. "Axalta is a strong cultural fit with Valspar and shares our commitment to innovation and customer service. We will work closely with Axalta to ensure a smooth transition of this business."