PHILADELPHIA, PA — Axalta Coating Systems (NYSE: AXTA), a leading supplier of liquid and powder coatings, announced its plan to expand its portfolio through the acquisition of The CoverFlexx Group from Transtar Holding Company. The transaction is set at an initial cash consideration of $285 million, with an additional $10 million earnout contingent on the business’s performance in 2024. The deal is anticipated to close in the third quarter, pending regulatory approval and fulfillment of other standard closing conditions.
The CoverFlexx Group, known for its comprehensive range of automotive refinish and aftermarket coatings, caters primarily to the economy segment in North America. With revenues reaching $78 million in 2023, the company boasts a robust product lineup, including primers, basecoats, clearcoats, and various paint shop accessories. The CoverFlexx Group operates with over 120 employees across sites in Brighton, Michigan, and Milton, Ontario. Esteemed brands under its umbrella include Transtar® Autobody Technologies, Pro FormTM, and Aftermkt ArmorTM.
Chris Villavarayan, CEO and President of Axalta, emphasized the strategic importance of this acquisition for Axalta’s Refinish business. “This acquisition aligns with our ongoing investment in Axalta’s Refinish business. We believe The CoverFlexx Group’s value-based solutions are an excellent complement to Axalta’s portfolio of offerings,” he stated.
Troy Weaver, President of Global Refinish at Axalta, expressed enthusiasm about the integration of The CoverFlexx Group into Axalta’s operations. “We are excited to have The CoverFlexx Group join the Axalta family. We expect the additional brands and capabilities will provide significant value to our customers and will further support the growth of our Refinish business,” Weaver added.
The acquisition marks a significant move for Axalta as it seeks to solidify its position in the automotive refinish market, offering an extended range of products and solutions to its customers. This strategic expansion could enhance Axalta’s competitiveness, offering more comprehensive and value-based solutions to a broader customer base across North America. The deal not only underscores Axalta’s commitment to growth and value creation but also signifies potential shifts in the coatings industry dynamics, with implications for market positioning and customer engagement strategies.
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