Strategic buyers are pursuing targets in the fairly fragmented chemicals sector that will expand both their geographic and product reach. Axalta, Maroon Group and Sherwin-Williams are buying companies that will help them grow in subsectors, such as food ingredients, while escalating their global presence. Century Industrial Coatings, Lincoln Fine Ingredients and Valspar are among recent targets.
Axalta Coating Systems Ltd. (NYSE: AXTA) is not done making deals after acquiring Century Industrial Coatings for undisclosed terms. Jacksonville, Texas-based Century makes water-based primers and polyurethane coatings for steel, rail cars and the oil and gas industries. Axalta manufactures liquid and powder coatings for the transportation and industrials sectors.