Axalta Acquires Aftermarket Coatings Manufacturer

MONDAY, MAY 20, 2024


Global liquid and powder coatings supplier Axalta Coating Systems entered into a definitive agreement to acquire automotive and aftermarket application coatings manufacturer The CoverFlexx Group.

Closing is expected to happen in the third quarter of the year, subject to regulatory approval and other customary closing conditions. The acquisition from Transtar Holding Company is for an initial cash consideration of $285 million, plus an additional $10 million earnout based on the business’ 2024 performance.

The CoverFlexx Group reportedly manufactures and sells coatings for automotive refinish and aftermarket applications, focused on economy customers in North America. The business offers a range of primers, basecoats and clearcoats, as well as aerosols, fillers, bedliners, detailing products and paint shop accessories.

Brands of The CoverFlexx Group include Transtar Autobody Technologies, Pro Form and Aftermkt Armor products. According to Axalta, the company had revenue of $78 million in 2023.

The CoverFlexx Group has manufacturing and product development sites in Brighton, Michigan, and Milton, Ontario, and more than 120 employees.

“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.

“We are excited to have The CoverFlexx Group join the Axalta family,” added Troy Weaver, Axalta’s President, Global Refinish. “We expect the additional brands and capabilities will provide significant value to our customers and will further support the growth of our Refinish business.”

   

Tagged categories: Acquisitions; Asia Pacific; Automotive coatings; Axalta; Business management; Business matters; Business operations; Coatings; Coatings manufacturers; EMEA (Europe, Middle East and Africa); Latin America; North America; Program/Project Management; Z-Continents

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