ACQUISITIONS AND DIVESTITURES

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

Acquisitions

During the first quarter of 2022, the Company made certain adjustments to the preliminary purchase accounting adjustments associated with the net assets acquired in its 2021 acquisition of Specialty Polymers, Inc. The fair value of finite-lived intangible assets increased by $61.4 million and property, plant and equipment assets acquired increased by $11.0 million, offset by a corresponding net decrease in goodwill. There was no material impact on previously reported financial results from these adjustments. The Company expects to complete the preliminary purchase price allocation for the acquisition within the allowable measurement period.

During the second quarter of 2022, the Company completed the acquisition of the European industrial coatings business of Sika AG (Sika) for $211.4 million. This business engineers, manufactures and sells corrosion protection coating systems and fire protection coating systems. The acquired business will be reported within the Company’s Performance Coatings Group. The Company expects to complete the preliminary purchase price allocation for the acquisition within the allowable measurement period. The results of operations of this acquisition have been included in the financial statements since the acquisition date. Pro

forma results of operations have not been presented as the impact on the Company’s consolidated financial results is not material.

In July 2022, the Company completed the acquisition of a domestic floor coatings company and a European coatings company for an aggregate purchase price of approximately $425 million. The acquired businesses will be reported within the Company’s Performance Coatings Group.

Divestiture

On March 31, 2021, the Company divested Wattyl, an Australian and New Zealand manufacturer and seller of architectural and protective paint and coatings with annual revenue of approximately $200 million. The divestiture enabled the Company to focus its resources on global opportunities which better align with our long-term strategies. In connection with this transaction, the Company recognized a pre-tax loss of $111.9 million within Other general expense (income) - net (see Note 15). The Wattyl divestiture did not meet the criteria to be reported as discontinued operations in our consolidated financial statements as the Company’s decision to divest this business did not represent a strategic shift that will have a major effect on the Company’s operations and financial results.