Axalta acquires U-POL for $590 million

Axalta Coatings Portfolio announced that it has entered into a definitive agreement to acquire U-POL Holdings Limited from Graphite Capital Management LLP and other holders for £428 million (approximately $590 million)
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The transaction is expected to close in the second half of 2021
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Axalta plans to fund the deal with cash on hand
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Founded in 1948 and headquartered in the UK, U-POL is a leading manufacturer of repair and refinish products, primarily for automotive refinish and aftermarket protection applications
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The company manufactures a wide range of high-quality automotive refinish products and accessories, including fillers, coatings, aerosols, adhesives and paint-related products, as well as other automotive aftermarket protective coatings
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U-POL sells its products in more than 100 countries and is known for its leading brands including Raptor®, Dolphin® and Gold™, among others
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Axalta will expand market access through its existing sales and distribution channels, while leveraging U-POL's distribution channels to expand the reach of its refinish coatings portfolio to new customers, thereby accelerating U-POL product growth
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Robert Bryant, CEO of Axalta, said: "Axalta is a global leader in premium refinish coatings.

U-POL's expertise in refinish accessories and protective coatings is highly complementary to Axalta's business and brings our addressable markets together.
Expanding into the important and growing segment of mainstream and affordable refinishers as well as the consumer do-it-yourself (DIY) aftermarket
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We also see blank applications for U-POL technology in other areas of our business including mobile and industrial coatings opportunity
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”

U-POL's outstanding global organization and its manufacturing facility and R&D laboratory in Wellingborough, UK, bring significant capabilities to the company's commercial, manufacturing and technical organizations, enhancing Axalta's ability to serve customers worldwide
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Troy Weaver, Senior Vice President, Global Refinish Coatings, Axalta, said: “Both companies have a very aligned culture of innovation, quality and strong operating principles
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We look forward to serving our customers with these additional capabilities and welcome U-POL’s Professional team members join the Axalta family
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U-POL expects fiscal 2021 net sales of approximately $145 million and adjusted EBITDA of approximately $38 million
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Axalta expects to achieve meaningful operational and commercial synergies across the combined global business
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The total price is approximately $590 million, and the 2021 full-year adjusted EBITDA multiple is approximately 12.
5 times, including run-rate operating synergies and efficiencies
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