The Valspar Corporation has agreed to acquire the powder coatings business of H.B. Fuller Company. H.B. Fuller's powder coatings business, which had net sales of approximately $75 million in 2005, serves customers in 26 countries from manufacturing facilities in the U.S. and the UK. The cash purchase transaction is subject to regulatory approval and is expected to close in December. Terms of the transaction were not disclosed.
"Fuller has a reputation for excellent quality and technology. Their powder coatings business fits extremely well with our North American powder coatings business and provides us with an immediate entry into Europe," William L. Mansfield, Valspar's president and CEO. "This acquisition and our recently completed powder coatings plant in China will enable us to better serve the needs of our global industrial coatings customers. We expect the acquisition will be modestly accretive to earnings in 2007."