Axalta Coating Systems, a global supplier of liquid and powder coatings, has entered into a definitive agreement with Valspar and Sherwin-Williams to acquire the assets related to Valspar’s North American Industrial Wood Coatings business for $420 million in cash.

Axalta secured a financing commitment for the transaction through Deutsche Bank New York Branch, subject to customary closing conditions. Centerview Partners acted as financial advisor to Axalta.

Valspar is divesting the business in connection with the reviews by the Federal Trade Commission (FTC) and Canadian Competition Bureau (CCB) of the proposed acquisition of Valspar by Sherwin-Williams. The business had revenues of approximately $225 million in 2016 and is one of the leading providers of coatings for OEM and aftermarket Industrial Wood markets, including building products, cabinets, flooring and furniture in North America.

Axalta intends to operate this business as a pure bolt-on. As part of the transaction, Axalta will acquire the personnel, both dedicated manufacturing sites, R&D assets and the underlying intellectual property of Valspar’s North American Industrial Wood Coatings business. The transaction is subject to the closing of the Valspar and Sherwin-Williams merger, as well as customary closing conditions and regulatory approvals, including the approval of the FTC and the CCB.

Axalta is a global company focused solely on coatings and providing customers with innovative, colorful, beautiful and sustainable solutions.