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Valspar Acquires Forest Products Coatings Business

Published on 2004-08-05. Author : SpecialChem

 

MINNEAPOLIS, MINNESOTA -- The Valspar Corporation (NYSE-VAL), a leading coatings manufacturer, announced that it has completed the purchase of selected assets of the forest products business of Associated Chemists, Inc. Sales of the acquired business for calendar year 2003 were approximately $28 million.

The acquired product line includes edgesealers, surface primers, paints and stains, inks and specialty chemicals for oriented strand board manufacturers and others in the forest products industry. Under terms of the transaction, Valspar acquired a manufacturing facility in Orangeburg, S.C. Other terms of the transaction were not disclosed.

Richard M. Rompala, Valspar's Chairman and Chief Executive Officer, said, "The forest products business we're acquiring from ACI is an excellent fit with Valspar. Their technology portfolio enhances our offerings in the building products arena and expands our customer relationships in this important market. We expect the acquisition will have little impact on this year's results and will be modestly accretive to earnings in fiscal 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 obligations to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements.

Source: Valspar


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