Axalta Purchases CoverFlexx Group From Transtar Holding Company

Axalta Coating Systems has entered into a definitive agreement to acquire North American automotive refinish and aftermarket coatings business, the CoverFlexx Group, from Transtar Holding Company.

Axalta will pay an initial cash consideration of US$285 million, plus a US$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.

“This acquisition aligns with our ongoing investment in Axalta’s Refinish business,” said Chris Villavarayan, Chief Executive Officer and President of Axalta. “We believe The CoverFlexx Group’s value-based solutions are an excellent complement to Axalta’s portfolio of offerings.”

The CoverFlexx Group, which owns the Transtar Autobody Technologies, Pro Form and Aftermkt Armor brands, offers a wide range of primers, basecoats and clearcoats, as well as aerosols, fillers, bedliners, detailing products and paint shop accessories. The business, which had revenue of US$78 million in 2023, employs more than 120 people at manufacturing and product development sites in Brighton, Michigan in the US and Milton, Ontario in Canada.

“We are excited to have The CoverFlexx Group join the Axalta family,” said Troy Weaver, President Global Refinish at Axalta. “We expect the additional brands and capabilities will provide significant value to our customers and will further support the growth of our Refinish business.”