TAGS: Automotive Coatings
Axalta Coating Systems has entered into a definitive agreement to acquire CoverFlexx Group from Transtar Holding Company for an initial cash consideration of $285 million. Additionally, there is an another $10 million earnout based on the business's 2024 performance. Closing is expected to occur in the third quarter. It is subject to regulatory approval and other customary closing conditions.
Focus on North American Market
The CoverFlexx Group manufactures and sells coatings for automotive refinish and aftermarket applications. They are focused on economy customers in North America. The business offers a wide range of primers, basecoats and clearcoats. They also provide aerosols, fillers, bedliners, detailing products and paint shop accessories.
Established brands of the CoverFlexx Group include Transtar® Autobody Technologies, Pro Form™ and Aftermkt Armor™ products. The CoverFlexx Group had revenue of $78 million in 2023. It includes operations with more than 120 employees and manufacturing and product development sites in Brighton, Michigan and Milton, Ontario.
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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,” said Chris Villavarayan, Axalta’s chief executive officer and president.
Troy Weaver, Axalta’s president, Global Refinish, said, “
We are excited to have 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.”
Source: Axalta Coating Systems