MONTREAL -- Sico Inc., a major Canadian coatings manufacturer, announced a definitive agreement to acquire Betonel Ltd., a Quebec-based manufacturer and retailer of architectural coatings, in a cash and stock transaction valued at $13.5 million.

Betonel, with annual sales of $27 million, markets products through approximately 60 company stores, franchises and dealers throughout Quebec. The company employs approximately 250 people. Sico said Betonel President Daniel Pellerin will retain that position and hold a seat on Sico's board. Completion of the transaction is anticipated by late November.

Sico President and CEO Pierre Brodeur said Betonel will continue to operate as a distinct business entity specializing in the manufacture and retail sale of its own brand of paints and related products. He said the acquisition would generate growth in Sico's sales to the professional-painters market, which constitutes 70% of Betonel's current sales.