Axalta makes second coatings acquisition in two months
Axalta Coating Systems (NYSE: AXTA) has agreed to purchase Spencer Coatings Group, a manufacturer of industrial coatings for heavy duty equipment, for an undisclosed amount. This marks as the Axalta’s second deal in less two months, including the acquisition of the North American industrial wood coatings division from The Valspar Corp. (NYSE: VAL) and The Sherwin-Williams Co. (NYSE: SHW).
Spencer Coatings Group is a U.K.-based independent distributor of industrial coatings materials. Founded in 1909, the target produces polyurethanes used for internal and external pipeline coatings, coatings needed for corrosion control of steel structures, and “high performance” water-based coatings used in the glass and general industrial markets. Acothane and Corroless are among the Spencer-owned brand names.
“With the acquisition of Spencer, we will have the opportunity to take some incredibly innovative products and expand into new geographies, as well as provide our combined industrial customers with additional product technologies,” according to Michael Cash, president of Axalta’s industrial coatings business.
Axalta, headquartered in Philadelphia, is also a global provider of coatings materials. The buyer’s products are used on light OEM vehicles, commercial vehicles, and refinish applications to electric motors, pipelines and buildings. As part of the Spencer deal, Axalta will acquire the target’s three England-based manufacturing facilities that supplies the U.K. and international markets. Axalta also purchased Geeraets Autolak in August 2016, a basecoat color coatings and sealants distributor, for an undisclosed amount.
Coating companies continue to attract buyer interest. TA Associates backed coatings supplier Ideal Cures Private Limited; Axalta Coating Systems Ltd. (NYSE: AXTA) has purchased Netherlands distributor Geeraets Autolak; Audax Private Equity-backed Innovative Chemical Products (ICP) bought adhesives maker Fomo Products Inc.; and PPG (NYSE: PPG) is acquiring MetoKote Corp.