OSAKA -- Nippon Paint Holdings is to buy U.S. Dunn-Edwards Paints for around 70 billion yen ($595 million), the Nikkei has learned.
The acquisition by Japan's biggest paint maker, which could come in the spring, shows that it is ready to join a wave of consolidation that is taking place in the U.S. and European paint industries.
Nippon Paint has set aside 300 billion yen to spend on acquisitions as it reaches for its mid term goal of 1 trillion yen in consolidated sales. It currently projects consolidated sales of 467 billion yen for 2016.
Dunn-Edwards is a California-based supplier of paint products used in house interiors and construction projects.
Nippon Paint will acquire all shares of Dunn-Edwards. Founded in 1925, Dunn-Edwards booked sales of $360 million in fiscal 2015 and has more than 130 company-owned stores.
Nippon Paint's North American operations have annual sales of around 30 billion yen, most of which come from automotive paint. The company expects that by expanding into the U.S.'s booming architectural paint market through Dunn-Edwards it can bump up sales in the country to 100 billion yen.
The company currently gets 60% of its sales in Asia.