PPG to Acquire VersaFlex, Wörwag
Throughout the month of January, global coatings supplier PPG (Pittsburgh) announced that it had reached two definitive agreements to acquire two coatings manufacturers, VersaFlex and Wörwag.
VersaFlex is an aggregation of four U.S.-based protective coatings companies, consisting of legacy VersaFlex, Raven Lining Systems, Milamar Coatings and Specialty Products, Inc. It is a portfolio company of DalFort Capital Partners, which previously acquired the aggregation from 2017-2019.
According to the press release, VersaFlex is a coatings manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and wastewater infrastructure, flooring, transportation infrastructure and industrial applications. The company operates three manufacturing sites located in Kansas, Oklahoma and Washington.
“VersaFlex’s attractive segment mix with strong growth outlook, unique product offering, broad expertise and manufacturing capabilities in polyurea and flooring coatings will complement and expand upon PPG’s current product offering,” said Ram Vadlamannati, PPG Senior Vice President, Protective and Marine Coatings and President, Europe, Middle East and Africa.
“This acquisition supports PPG’s commitment to growing our industry-leading technology portfolio and customer touchpoints.”
Currently, VersaFlex employs approximately 130 employees and its full year 2020 revenue is expected to be approximately $70 million. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions. Financial terms were not disclosed.
Founded in 1918, global manufacturer Wörwag is a family-owned company headquartered in Stuttgart, Germany, that produces coatings for industrial and automotive applications. Currently, the company employs about 1,100 people globally and specializes in developing sustainable liquid, powder and film coatings.
“Wörwag’s industry expertise in powder and liquid coatings for industrial and automotive applications is highly complementary to PPG’s business, and will help to further expand our product offering,” said Rebecca Liebert, PPG Executive Vice President.
“The addition of Wörwag will also enhance PPG’s waterborne, direct-to-metal, liquid and powder coatings offerings, and allow us to further expand current customer distribution in key geographies.”
Wörwag operates locations in Germany, the U.S., China, South Africa, Mexico, Spain, Switzerland and Poland. The company is expected to total approximately 220 million euros (just over $267 million) in its full year 2020 revenue.
The transaction is expected to close in the first half of 2021, subject to customary closing conditions. Financial details of the acquisition were not disclosed.