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Valspar to Buy European Coating Maker
The Valspar Corp. is plunging into Europe’s high-performance coatings market with the acquisition of Italy’s Inver Holding S.r.l., an international group and market leader in industrial coatings.
Founded in 1934 and family owned for three generations, the Inver Group produces more than 300 primers, enamels, single- and two-component, air- or oven-dried, spray and immersion liquid coatings, as well as a wide variety of powder coatings, resins and additives.
Minneapolis-based Valspar, founded in 1806, is the world's sixth-largest paint and coatings company.
Its vast industrial portfolio currently includes coil and extrusion coatings for high-performance applications—a portfolio that will deepen and broaden with the new acquisition, the company said.
Diverse Markets, Wide Footprint
Inver operates three subsidiaries and five manufacturing sites in Europe and employs about 600 people worldwide.
Headquartered in Bologna, Inver's operations reach from Liverpool, England; to St. Petersburg, Russia; to Athens, Greece. Inver paints and coatings are used in the building equipment, container, protective, transportation, industrial equipment, energy, agricultural, HVAC and other markets.
Its primary markets are in Italy, the United Kingdom, France, Germany and Poland, but the company has had a global reach for decades, through various licensing and distribution agreements with Sherwin-Williams, PPG Industries and other coating makers, according to its company history.
Inver also had interests in companies that were later absorbed by Rohm & Haas, AkzoNobel and International Paint.
In 2008, Inver took over the powder coating manufacturing company Becker, which had plants in France, United Kingdom, Poland and Italy.
In 2012, the Inver Group reported sales of €160 million ($200 million USD).
Growth Strategy
The acquisition will connect Valspar with Europe's $6 billion industrial coatings market and feed expansion of the company's industrial portfolio, said Gary Hendrickson, chairman and chief executive officer.
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| Valspar Corp. |
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Valspar Corp.'s industrial coatings portfolio includes coil and extrusion products for high-performance architectural applications. Inver will give Valspar a foothold in Europe. |
Valspar's industrial business currently comprises coil and extrusion coatings for high-performance architectural applications as well as general industrial coatings for a variety of market sectors.
“Consistent with the growth strategy for our industrial coatings business, the acquisition of Inver Group significantly strengthens our position in the large and attractive European coatings market and provides operational synergies with our existing operations,” Hendrickson said in an announcement.
“Inver’s strong product portfolio and customer focus have successfully delivered results through numerous business cycles. With Inver, we gain a proven leadership team that is a strong fit with Valspar’s culture. Our customers will benefit from the expanded technologies and service we will provide together.”
Closing, Terms
The transaction is expected to close in the fiscal fourth quarter, subject to regulatory approval and customary closing conditions. Financial terms were not disclosed.
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| Inver Group |
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Inver's portfolio includes protective and marine coatings for offshore platforms, pipelines, petrochemical tanks, and other industrial applications. |
Inver Group CEO Giovanni Domenichini said his family's company was "delighted to join forces with Valspar, adding Inver’s strong customer focus, leading technology and track record of success in the European industrial coatings market to Valspar's global footprint and commitment to excellence."
Domenichini added, "We believe this combination is an important step toward developing a market leading presence in Europe that also will be a platform for truly superior global growth in our industrial coatings businesses. Our family has proudly owned Inver, and we are now proud to join the Valspar family."
