US paint company The Valspar Corporation will acquire Australian paint manufacturer Wattyl Limited for approximately $142 million.
Though the transaction is subject to approval from regulatory authorities and shareholders, Valspar has agreed in principle to take-on Wattyl’s debts, which amount to an unnamed sum.
Wattyl had 2009 sales of $381.4 million. The company distributes leading paint brands to retail customers through home improvement centres and hardware outlets and to trade customers through a network of 140 company-owned stores.
"Wattyl is a market leader with excellent brands, high quality products and broad distribution across all channels throughout Australia and New Zealand," said Valspar chairman and chief executive officer, William L. Mansfield.
"This latest acquisition builds on our increasing presence in the Asia Pacific region and presents an outstanding opportunity for growth."