Axalta Boosts Auto Offering with U-POL Buy
US coatings company Axalta has entered into an agreement to buy U-POL Holdings, a UK manufacturer of repair and refinish products for the automotive industry, from private equity owner Graphite Capital Management. Closing is expected to for the second half of 2021. The purchase at about $590 million.
U-POL produces a wide range of automotive refinishing products and accessories including fillers, coatings, aerosols, adhesives, and paint-related products, as well as other automotive aftermarket protective coatings, in more than 100 countries. The company is well known for leading brands such as Raptor, Dolphin, and Gold, among others. U-POL expects net sales of approximately $145 million and adjusted EBITDA of approximately $38 million for the 2021 financial year.
"Axalta is the world leader in the premium refinish coatings segment. U-POL's expertise in refinish accessories and protective coatings is highly complementary to Axalta's business and expands our addressable market into the important and growing mainstream and economy-based refinish segment as well as the consumer do-it-yourself (DIY) aftermarket," said Axalta CEO Robert Bryant. "We also see opportunities for U-POL's technology in whitespace applications for other areas of our business, including Mobility and Industrial Coatings."
The deal will give Axalta a manufacturing plant and R&D lab in Wellingborough, Northamptonshire.
The Philadelphia-based group expects to realize annual operating synergies and efficiencies of approximately $10 million within 18 to 24 months of the transaction closing.
Graphite added that the transaction will allow U-POL to build on the strong platform it has developed under its ownership, during when sales have doubled over £100 million and staff numbers have increased by more than 60%, from 210 to 340.
The investment group noted that as well as being the market leader in the UK, U-POL has strong, growing positions in the US, the Far East, the Middle East, Africa and Russia, and other international markets. Graphite originally led the £139 million buy-out of U-POL in 2010.
Author: Elaine Burridge, Freelance Journalist
