Axalta to acquire CoverFlexx Group for $285 million

Axalta Coating Systems announced that it has entered into a definitive agreement to acquire CoverFlexx Group from Transtar Holding Company for $285 million in initial cash, with Axalta receiving an additional $10 million in revenue from CoverFlexx’s 2024 business. Closing is expected to occur in the third quarter and is subject to regulatory approvals and other customary closing conditions.

CoverFlexx Group manufactures and sells coatings for automotive refinish and aftermarket applications, with a focus on economical customers in North America. The company offers a variety of primers and clearcoats, as well as aerosols, fillers, spray bed liners, detailing products and paint shop accessories. CoverFlexx Group's well-known brands include Transtar® Autobody Technologies, Pro FormTM and Aftermkt ArmorTM products. With 2023 revenue of $78 million, CoverFlexx Group has more than 120 employees in its operations and has manufacturing and product development sites in Brighton, Michigan and Milton, Ontario.

"This acquisition represents our continued investment in Axalta's refinishing business. We believe CoverFlexx Group's valuable solutions are an excellent addition to Axalta's product portfolio." said Chris Villavarayan, Axalta CEO and President.

Troy Weaver, president of global refinishing at Axalta, added:"We are delighted that CoverFlexx Group has joined the Axalta family. This additional brand and production capacity will provide significant value to our customers and will further support the growth of our refinish business."