Industry News

Valspar to Acquire Samuel Cabot Incorporated

Published on 2005-05-11. Author : SpecialChem

MINNEAPOLIS -- The Valspar Corporation (NYSE: VAL - News), a leading coatings manufacturer, announced that it has agreed to acquire Samuel Cabot Incorporated, a privately owned manufacturer of premium quality exterior and interior stains and finishes. Founded by the late Samuel Cabot in 1877, the Company has been family-owned for 128 years. Cabot is based in Newburyport, Massachusetts and had sales in 2004 of approximately $58 million. The cash merger transaction is subject to regulatory approval and is expected to close in approximately one month. Terms of the transaction were not disclosed.

William L. Mansfield, Valspar's President and Chief Executive Officer, said, "Cabot Stains has a long, distinguished history and an outstanding reputation for quality products. We are committed to strengthening and expanding the Cabot brand under the continued leadership of John Schutz, Cabot's Chief Executive Officer. The combination of the Valspar and Cabot brands significantly strengthens our product offering for independent paint retailers and we are enthusiastic about our prospects for growth in this important distribution channel. We expect the acquisition will be slightly accretive to earnings in 2005."

Valspar is a $2.5 billion global leader in the paint and coatings industry, with a broad range of products including industrial, architectural, packaging, automotive refinish and floor coatings and specialty polymers and colorants.

Valspar shares are traded on the New York Stock Exchange under the symbol VAL.

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: The Valspar Corporation

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