Axalta to acquire the CoverFlexx Group
Axalta Coating Systems has entered into a definitive agreement to acquire The CoverFlexx Group from Transtar Holding Company for initial cash consideration of $285 million, plus an additional $10 million earnout based on the business’s 2024 performance.
Closing is expected to occur in the third quarter and is subject to regulatory approval. 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. 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,” said Chris Villavarayan, Axalta’s Chief Executive Officer and President.
