US coatings company Axalta has initiated a comprehensive review of strategic alternatives, including a potential sale.  Its board of directors has formed a strategic review committee, chaired by independent presiding director, former Borealis CEO Mark Garrett, and including CEO Robert Bryant and independent director Samuel Smolik.

Bryant said Axalta continues to execute its long-term strategy, delivering significant cost savings to bolster our industry-leading margins, redeploying free cash flow to drive accretive organic and inorganic growth initiatives, and returning more than $380 million to shareholders over the last two years.

Given Axalta's progress in recent years and its leading position as a global coatings company, Bryant added that management believes now is the right time to review a full range of options in an effort to maximize value for all shareholders. He said 90% of 2018 sales were derived from end markets where Axalta has either the number 1 or 2 global position.

The company has discussed a sale in the past, both with Japan’s Nippon Paint and Dutch coatings manufacturer AkzoNobel. Nippon Paint made an all-cash offer in November 2017 after Axalta’s negotiations with AkzoNobel broke down. However, discussions were short-lived with Axalta saying Nippon Paint’s board was unwilling to meet its expectations regarding value.

Axalta employs about 14,000 people and posted net sales of $4.7 billion in 2018.