Acquisition includes Transtar Autobody Technologies, Pro Form and Aftermkt Armor brands.
Axalta Coating Systems (NYSE: AXTA) today announced an agreement to acquire The CoverFlexx Group from Transtar Holding Company for an initial cash consideration of $285 million, plus an additional $10 million earnout based on the business’s 2024 performance. The closing of the transaction 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 and manufacturing and product development sites in Brighton, Michigan and Milton, Ontario.
“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, added, “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.”
Ben DePompei, President of The CoverFlexx Group, stated, “Axalta is a premier global manufacturer of refinish and industrial coatings. Coupling our brands and opportunities to expand is exciting, and we look forward to joining their team and experiencing continued growth.”
Neil Sethi, President and CEO of Transtar Holding Company added, “The CoverFlexx Group’s strategic innovation has driven remarkable success, and we believe Axalta is positioned to further accelerate its growth trajectory.”
According to Transtar Holding Company, the sale allows the company to focus exclusively on the growth of NexaMotion Group, a portfolio of technology-driven automotive aftermarket businesses that offer a complete suite of mechanical auto repair products and e-commerce solutions.