Axalta Coating Systems today announced that its Board of Directors has initiated a comprehensive review of strategic alternatives to maximize shareholder value. The Board has formed a Strategic Review Committee, which will be chaired by the Independent Presiding Director of Axalta’s Board, Mark Garrett, and will also include Axalta Chief Executive Officer Robert Bryant and Axalta Independent Director Samuel Smolik.
The company, which counts Berkshire Hathaway as its largest shareholder, is exploring options, which could include an outright sale of the business.
This would be the second time the former DuPont Performance Coatings (DPC) business is up for sale.
The Carlyle Group private equity firm acquired DPC in February 2013 and renamed Axalta. The company was taken public and Carlyle sporadically reduced its stake, ultimately selling the remainder of its shares in 2016.
“Axalta’s Board is committed to maximizing value for all shareholders and has initiated a comprehensive review of strategic alternatives, including a potential sale of the Company, changes in capital allocation, and ongoing execution of our strategic plan,” said Garrett.
This review comes after a few unproductive takeover discussions.
Axalta discussed a potential merger with Akzo Nobel in late 2017, but those discussions ended after Nippon Paint made a cash bid for Axalta.
However, no deal was concluded between Axalta and Nippon Paint with talks collapsing less than a month after the overture by the Japanese paint giant.
Axalta’s press release said no assurances can be given regarding the outcome or timing of the review process. Axalta does not intend to make any further public comment regarding the review until it has been completed or the Company determines that disclosure is required or beneficial.
The Board has engaged Evercore and Barclays as financial advisors and Morrison & Foerster LLP as legal advisor to assist in its review.