Axalta to Acquire CoverFlexx Group
The CoverFlexx Group’s focus on coatings for automotive refinish and aftermarket applications for North American customers will add to Axalta’s Refinish business.
Axalta Coating Systems has entered into a definitive agreement to acquire the CoverFlexx Group from Transtar Holding Co. for an initial cash consideration of $285 million, plus an additional $10 million earnout based on the business’ 2024 performance. Closing is expected to occur in Q3 2024 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 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 made $78 million in revenue in 2023 with operations that include more than 120 employees and manufacturing and product development sites in Brighton, Michigan, and Milton, Ontario.
According to Chris Villavarayan, Axalta’s CEO and president, the “acquisition aligns with our ongoing investment in Axalta’s Refinish business. We believe the CoverFlexx Group’s solutions are a complement to Axalta’s portfolio of offerings.”
