Axalta’s board of directors has unanimously voted to conclude its review of strategic alternatives due to the dislocation in global markets caused by the COVID-19 pandemic.
During the nine-month review, Axalta explored alternatives to maximise shareholder value, including a comprehensive sale process, as well as an evaluation of the company’s operating strategies, core underlying businesses and standalone value creation potential.
Following evaluation of these alternatives, the board determined that shareholders are best served by the ongoing execution of the company’s strategic plan.
Axalta communicated with more than 50 participants, including companies in the coatings, chemical and industrial sectors, as well as financial sponsors throughout the US, Europe, and Asia regarding a potential sale of the company or components of its business. Axalta signed non-disclosure agreements with 18 potential purchasers to facilitate due diligence.
“Although the process has concluded, our board will continue to evaluate all opportunities to enhance shareholder value,” said Mark Garrett, Axalta’s Chairman of the Board and Chair of its Strategic Review Committee. “I would like to thank Robert Bryant (Axalta President and CEO) and the management team for their hard work in the review process and for the excellent job they are doing to navigate Axalta through a global crisis. I’d also like to thank our employees for their relentless commitment and outstanding contributions to Axalta’s success.”
Bryant said Axalta has taken “swift and decisive action” to address the impact of COVID-19 on customer demand, including executing adjustments to Axalta’s cost structure.
“We believe the actions we are taking, coupled with a strong balance sheet and ample liquidity, will enable us to emerge from this crisis in a position of strength. Our top priority is the health of our employees, customers and communities. We will continue to monitor the situation closely and take further action as appropriate,” said Bryant.