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Valspar Acquires De Beer Lakfabrieken B.V.; Announces New U.S. Paint Plant

Published on 2004-01-22. Author : SpecialChem

The Valspar Corporation (NYSE: VAL - News), a leading coatings manufacturer, announced that it has purchased De Beer Lakfabrieken, a privately-owned manufacturer and distributor of automotive refinish coatings based in Lelystad, The Netherlands. The acquisition includes De Beer's subsidiaries in the United Kingdom and Australia. De Beer sells products in over 65 countries and had sales in calendar year 2003 of approximately euro 39 million ($50 million at current exchange rates). Terms of the transaction were not disclosed.

Richard M. Rompala, Valspar's Chairman and Chief Executive Officer, said, "De Beer is an excellent strategic fit with Valspar. This acquisition broadens our product offering and technology for the US automotive refinish market and enhances our ability to grow in this attractive market on a global basis. We expect the acquisition will be modestly accretive to earnings in 2004."

In addition to this automotive refinish growth initiative, Valspar's Board of Directors has approved the construction of an architectural coatings manufacturing and distribution facility in eastern Pennsylvania. "This investment positions us well to support the rapid growth of our architectural paint business," said Rompala. The new plant is expected to be fully operational by mid-year 2005.

This press release contains certain "forward-looking" statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements. These uncertainties and other factors include dependence of internal earnings growth on economic conditions and growth in the domestic and international coatings industry; risks related to any future significant acquisitions, including risks of adverse changes in the results of acquired businesses, risks of disruptions in business resulting from the integration process and higher interest costs resulting from further borrowing for any such acquisitions; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; changes in the Company's relationships with customers and suppliers; unusual weather conditions that might adversely affect sales; changes in raw materials pricing and availability; changes in governmental regulation, including more stringent environmental, health and safety regulations; the nature, cost and outcome of pending and future litigation and other legal proceedings; the outbreak of war and other significant national and international events; and other risks and uncertainties. The foregoing list is not exhaustive, and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.

Source: The Valspar Corporation


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