Wattyl has accepted US based Valspar's offer for a takeover worth $142 million, ending speculations surrounding the paint maker's fate.

Under the deal, the company will give 30 per cent of its market share to Valspar. The cash all bid worth $1.67 per share is actually 30 per cent higher than the previous indicative and non bonding offer of Valspar worth $110 million, or $1.3 per share.

The Board of Wattyl unanimously voted for the new offer, which is worth more than 200 per cent of the Wattyl's closing share value of 78.5¢ last May 24, the date when news of Valspar's offer was disclosed.

"The proposed acquisition enables shareholders to realise cash for their Wattyl shares at a significant premium to recent trading levels," Chairman John Ingram of Wattyl said.

"With global expertise and scale, Valspar will provide Wattyl's customers and employees with significant benefits."

The company's shares made quite a jump of 28 per cent, or 35.5¢, to post a $1.615 value share at closing yesterday.

Wattyl has been operating in Australia since 1915, and is the owner of the Wattyl Estapol and Solagard brands.

Valspar is one of the largest coatings and paint companies in the world, with a posted yearly revenue worth about $A3.2 billion ($US2.8 billion).