Valspar Makes China Acquisition

June 26, 2006  by in UnCategorized   

By Home Furnishings Business in on June 2006 Valspar Corp. an international coatings company and a leading supplier of furniture finishes, announced Monday that it will acquire a majority interest in Huarun Paints Holdings Co. Ltd., from the Hong Kong-based investment firm Champion Regal.

With 2005 sales of around $180 million, the 15-year-old Huarun Paints is one of China’s largest independent coatings companies, and has grown to become one of China’s leading domestic suppliers of wood and furniture coatings and a rapidly growing supplier of architectural coatings.

The company has an extensive network of distributors and exclusive retail paint stores throughout China. The cash purchase transaction is expected to close by the end of July and to be slightly dilutive to Valspar’s earnings in fiscal years 2006 and 2007.

“Valspar is pleased to expand its presence in China with Huarun Paints’ management team and current shareholders as our partners,” said William Mansfield, Minneapolis-based Valspar’s president and chief executive officer. Huarun Paint’s current shareholders and management team will retain a minority interest in the company.

Valspar had fiscal 2005 sales of $2.7 billion.