According to Reuters, PPG Industries has partnered with private equity investor Clayton, Dubilier & Rice to consider acquiring Axalta Coating Systems.
Citing people with knowledge of the matter, Reuters said joining forces with the buyout firm would enable PPG to get around any regulatory concerns which could be raised by an acquisition. The sources said the parties are considering establishing a consortium which could also include the likes of Singaporean sovereign wealth fund GIC, along with US investment management firm BlackRock, to carry out the deal. However, should the parties go ahead with the planned approach, they could have some competition from Platinum Equity and Koch Industries, with the sources telling Reuters the pair have held talks about partnering on a bid.
A sale of Axalta was first reported back in June, when the company began a review of strategic alternatives in an attempt to “generate value for shareholders”. However, the sources cautioned that there is no guarantee of a sale of Axalta taking place. Axalta rebuffed acquisition approaches in 2017 from Akzo Nobel and Nippon Paint Holdings.
Axalta, which describes itself as a leading global coatings provider active in the development, manufacturing, delivery and service of liquid and power coatings, employs around 14,000 people and has a customer base numbering in excess of 100,000 and spanning 130 countries.
None of the parties involved have commented on the report.