United Paint sold its global interior automotive rigid thermoplastics coatings business (the “Business”) to Axalta Coatings Systems. Grace Matthews advised United Paint on this transaction. Terms of the transaction were not disclosed.
The Business, with operations in North America and China, is a formulator and manufacturer of highly innovative coatings for automotive interior thermoplastic substrates with approvals for its products by 25 of the world’s leading vehicle manufacturers. Its coating systems enhance the durability and aesthetic qualities of components, such as instrument panels, consoles and appliques, inside many of the world’s most successful automotive programs.
The carve-out divestiture of the Business will allow United Paint to continue a 63-year legacy of reinvestment in niche coating technologies.
“By leveraging Grace Matthews’ deep coatings and chemicals transaction expertise, we were able to successfully navigate the sensitive issues of a carve-out transaction while finding the right home for the business,” said J. Geoff Piceu, CEO of United Paint. “With Axalta’s leadership position in the automotive exterior coatings market, its history of innovation, focus on customers and its global scale and reach, we are confident that it will allow the individuals, products and customers associated with this segment of our business to maximize their global potential.”
“We had a number of strong, strategic options, however the unique fit with Axalta was clear to us early on,” said Ben Scharff, Managing Director of Grace Matthews. “The products, personnel and culture of both companies aligned well, and we saw a lot of potential incremental value to be had by Axalta acquiring the business and strengthening its global footprint. It is a nice outcome for all parties; we are happy for Geoff and his team and confident that Axalta will do very well with the business.”