Valspar reports last earnings as independent company

Valspar on Wednesday reported lower profits in its final quarterly earnings report as an independent public company.

Cleveland-based Sherwin-Williams said last week it had received regulatory approval from the U.S. Federal Trade Commission and the Canadian Competition Bureau for its $11.3 billion acquisition of Valspar and expected the deal to close Thursday.

Valspar reported profits of $75.5 million, or 93 cents per diluted share, for the second quarter, which ended April 28. Profits were hurt by the $18.2 million in merger-related costs the company recorded for the first half of its fiscal year, according to a Wednesday filing with the Securities and Exchange Commission.

Revenue for the quarter was $1.1 billion, a 3.7 percent increase fueled by higher sales in Valspar's coil, consumer paints, general industrial and wood product lines.

The merger deal between two of the largest North American paint and coating manufacturers was announced in March 2016 and expected to close in the first quarter of this year.

However, regulators said Valspar would have to divest up to $650 million of its business if the deal was to be approved.

In April, Valspar and Sherwin-Williams announced that they had agreed to sell Valspar's North American Wood Coatings business to Axalta Coating Systems for $420 million in cash.

The companies have not said how the merger will affect Minnesota operations.