Valspar says that it has reached a definitive agreement to acquire the performance coatings businesses of Quest Specialty Chemicals (Charleston, SC), which include automotive refinish and industrial coatings. Financial terms of the deal have not been disclosed. With 2014 sales of about $190 million, the businesses to be acquired from Quest include an automotive refinish business along with a smaller industrial products business. The transaction is expected to close in the third quarter. The acquisition will increase presence in the attractive automotive refinish market and provides synergies with Valspar’s existing business, the company says.
Quest’s automotive products business formulates, manufactures, and distributes a complete line of advanced technology paints, coatings systems, and accessories to professional refinishers under the brands of Matrix, Prospray, and USC, primarily in North America and Europe, Valspar says. Quest’s industrial products business serves both the professional and consumer markets with aerosol spray products and highly-specified coatings for industrial applications under the Patriot, Raabe and Precision Color brands, primarily in North America. Valspar is a global automotive coatings manufacturer and delivers color-matching technology, support and service.
“The acquisition strengthens Valspar’s value proposition in automotive refinish,” says Gary Hendrickson, Valspar chairman and CEO. “Our customers will benefit from expanded distribution of a portfolio of preferred brands they know and trust, a broader range of high-performance products and a stronger service network. We are pleased to welcome the Quest team to the Valspar family to help deliver these benefits to our customers.”
By Deepti Ramesh