Valspar Corp., a global coatings company, said Monday that it has agreed to acquire a significant majority of the share capital of Huarun Paints Holdings Company Limited, one of China's largest independent coatings companies, from Champion Regal, a Hong Kong-based investment company.Terms of the deal weren't disclosed.
Founded in 1991, Huarun Paints has grown to become one of China's leading domestic suppliers of wood and furniture coatings and a rapidly growing supplier of architectural coatings. Huarun Paints had sales of about $180 million in 2005, primarily through its focus on the development of an extensive network of distributors and exclusive retail paint stores throughout China. Valspar had fiscal 2005 sales of $2.7 billion.
The cash deal is expected to close by the end of July.
"Valspar is pleased to expand its presence in China with Huarun Paints' management team and current shareholders as our partners," said William Mansfield, Valspar's President and Chief Executive Officer. "By combining the resources of our two companies, we intend to expand Huarun Paints' product offering and geographic reach in the world's fastest growing coatings market."