Axalta Coating Systems Completes Acquisition of Valspar’s North American Industrial Wood Coatings Business

PHILADELPHIA–(BUSINESS WIRE)–Axalta Coating Systems (NYSE: AXTA), a leading global supplier of liquid
and powder coatings, has completed its previously announced acquisition
of The Valspar Corporation’s (NYSE: VAL) North American Industrial Wood
Coatings business. Valspar divested the business in connection with the
antitrust approval of its acquisition by The Sherwin-Williams Company.

The purchase price for the transaction is $420 million, subject to
certain adjustments set forth in the Asset Purchase Agreement. The
acquired business had net sales of approximately $225 million in 2016.
Axalta expects the transaction to be accretive to earnings in the first
full year, but less accretive to near-term results including the
anticipated integration costs to be incurred largely in 2017.

The North American Industrial Wood Coatings business is one of the
leading providers of coatings for OEMs and distributors engaged in
industrial wood markets, including building products, cabinets, flooring
and furniture, in North America. The strong brands of the business,
which include Zenith^®, Ultraguard^TM, Lifeshield^TM
and Color Choice^®, will join Axalta’s portfolio of
Performance Coatings products and services. A shared commitment to
customer care, technical service and support, as well as a keen focus on
innovation in advancing the technology of wood coatings will provide a
strong platform for future growth in this important industrial coatings
market. 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 throughout the U.S. and Canada.

About Axalta Coating Systems

Axalta is a leading global company focused solely on coatings and
providing customers with innovative, colorful, beautiful and sustainable
solutions. From light OEM vehicles, commercial vehicles and refinish
applications to electric motors, buildings and pipelines, our coatings
are designed to prevent corrosion, increase productivity and enable the
materials we coat to last longer. With more than 150 years of experience
in the coatings industry, the approximately 13,000 people of Axalta
continue to find ways to serve our more than 100,000 customers in 130
countries every day with the finest coatings, application systems and
technology. For more information visit axaltacoatingsystems.com
and follow us @axalta on Twitter and on LinkedIn.

Cautionary Statement Concerning Forward-Looking Statements

This release may contain certain forward-looking statements regarding
Axalta and its subsidiaries including those relating to the expected
benefits of Axalta’s acquisition of The Valspar Corporation’s North
American Industrial Wood Coatings business. Forward-looking statements
are based on management’s expectations as well as estimates and
assumptions prepared by management that, although they believe to be
reasonable, are inherently uncertain. These statements may involve risks
and uncertainties, including, but not limited to, Axalta’s ability to
achieve the expected benefits of the acquisition. Axalta undertakes no
obligation to update or revise any of the forward-looking statements
contained herein, whether as a result of new information, future events
or otherwise.

Contacts

Axalta Coating Systems
Matthew Winokur
D +1 215 255 7932
[email protected]
axaltacoatingsystems.com