Global coatings company Axalta Coating Systems Ltd. (Glen Mills, Pennsylvania, USA) announced that it has entered into a definitive agreement to acquire The CoverFlexx Group (Brighton, Michigan, USA) from Transtar Holding Company for initial cash consideration of $285 million, plus an additional $10 million earnout based on the businesses’ 2024 performance. Closing is expected to occur in the third quarter and is subject to regulatory approval and other customary closing conditions.
The CoverFlexx Group manufactures and sells coatings for automotive refinish and aftermarket applications, focused on economy customers in North America. The business offers a wide range of primers, basecoats, and clearcoats, as well as 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 with operations that include more than 120 employees, as well as manufacturing and product development sites in Brighton, Michigan, and Milton, Ontario.
“This acquisition aligns with our ongoing investment in Axalta’s Refinish business,” says Chris Villavarayan, Axalta’s chief executive officer and president. “We believe The CoverFlexx Group’s value-based solutions are an excellent complement to Axalta’s portfolio of offerings.”
“We are excited to have The CoverFlexx Group join the Axalta family,” adds 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.”
Source: Axalta, ir.axalta.com.