Axalta Announces Acquisition of The CoverFlexx Group, a Leading Aftermarket Coatings Business Catering to Economy Customers in North America

Axalta Coating Systems, a prominent global coatings company, has announced a definitive agreement to acquire The CoverFlexx Group from Transtar Holding Company. The acquisition involves an initial cash payment of $285 million, with an additional $10 million earnout contingent on the business’s performance in 2024. The transaction is anticipated to close in the third quarter, pending regulatory approval and other standard closing conditions.

The CoverFlexx Group specializes in manufacturing and selling coatings for automotive refinish and aftermarket applications, targeting economy customers in North America. Their product line includes a wide array of primers, basecoats, clearcoats, aerosols, fillers, bedliners, detailing products, and paint shop accessories. Established brands under The CoverFlexx Group umbrella include Transtar Autobody Technologies, Pro Form, and Aftermkt Armor. In 2023, The CoverFlexx Group generated $78 million in revenue, supported by over 120 employees and operations in Brighton, Michigan, and Milton, Ontario, where their manufacturing and product development sites are located.

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

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

Source: AXALTA