The Valspar Corp. has completed its previously announced acquisition of Australian paint manufacturer Wattyl Ltd.
Minneapolis-based Valspar acquired all outstanding Wattyl shares for about $142 million and assumed Wattyl’s existing debt. Wattyl had 2009 sales of $381.4 million, Valspar said.
On Sept. 13, Wattyl announced that the Federal Court of Australia had approved the deal, which the companies announced June 28. Trading in Wattyl shares on the ASX was suspended the same day.
‘Outstanding Opportunity for Growth’
Under the arrangement, The Valspar (Australia) Paint Acquisition Pty Ltd. (VAPA), a wholly owned subsidiary of The Valspar Corp., acquired all of Wattyl’s shares for $1.67 cash each. Wattyl’s shareholders approved the transaction on Sept. 8.
“Wattyl is a market leader with excellent brands, high-quality products and broad distribution across all channels throughout Australia and New Zealand,” Valspar Chairman and CEO William L. Mansfield said when the acquisition was announced.
“This latest acquisition builds on our increasing presence in the Asia-Pacific region and presents an outstanding opportunity for growth.”
Wattyl’s paint and coatings brands include the Interior Design i.d., Solagard, Aquatrim, Weathergard, Estapol, Granosite, Killrust, and Solver Paints labels.
Wattyl Board Changes
Wattyl has also announced the appointments of Rolf Engh, Lori A. Walker and Howard C. Heckes as company directors, effective Sept. 13. Ian Fraser, Patricia Akopiantz and Mark Luby resigned as directors the same day.
The appointments and resignations were conducted in accordance with the terms of the acquisition.
On Monday (Sept. 20), Valspar announced that its board had declared a quarterly dividend of 16 cents per share, payable Oct. 15 to all common stockholders of record on Oct. 1.
In August, the company reported third-quarter sales of $873.9 million, a 10% increase from the same period last year.
Valspar, established in 1806, produces consumer, packaging, wood, industrial and automotive coatings; custom finishing systems; and coatings intermediates.