From left: Charlie Shaver, Axalta Chairman and CEO; Dr. Myung K. Hong, founder, President and Chairman of Dura Coat; Mrs. Lorrie Hong, Member of the Board of Directors of Dura Coat; and Michael A. Cash, Axalta Senior Vice President and President, Industrial Coatings.
Axalta Coating Systems to Acquire Coil and Spray Coatings Manufacturer Dura Coat Products
Axalta Coating Systems (NYSE: AXTA), a leading global supplier of liquid and powder coatings, announced today that it has entered into a definitive agreement to acquire Dura Coat Products, a prominent manufacturer of coatings for metal coil and related markets in North America. Pursuant to the agreement, Axalta will initially purchase a majority stake in Dura Coat at the closing which is expected to occur in the third quarter of 2016 and the remaining outstanding shares by January 2019, subject to required regulatory approvals and other customary closing conditions. Financial terms of the transaction were not disclosed.
Founded in 1986, Dura Coat has developed a leadership position in the market via its singular focus on overcoming customer challenges through innovation. Well-known Dura Coat brands include Durapon™, Ceranamel™ and the XT series of specialty coatings. Dura Coat’s innovative product lines have been formulated to suit a variety of building construction needs, general industrial applications, and treatment of aluminum extrusions. Dura Coat takes great pride in its strong environmental initiatives which it achieves through sound manufacturing practices and with products that have eliminated or reduced hazardous air pollutants. Its products are market-leading Cool Roof, Energy Star and LEED 29 compliant. Dura Coat operates two state-of-the-art coatings manufacturing plants in Riverside, California and Huntsville, Alabama.
“This is an exciting milestone in the evolution of both Axalta and Dura Coat,” explained Axalta Chairman and CEO Charlie Shaver. “Dura Coat’s market-leading technology, strong company values, and commitment to customers are extremely well-aligned with Axalta’s priorities. With this partnership, we look forward to offering our combined customer base an even broader range of solutions to meet their requirements with the most innovative coil coating products and colors in the marketplace today.”
Axalta is already familiar with the marketplace for the types of coil sheets which benefit from Dura Coat products. Axalta has offerings complementary to those served by Dura Coat, including leading global brands Alesta® and Abcite® powder coatings, AquaEC™ electrocoat products, and Imron® Industrial coatings which each provide customers in the construction, architectural, and general industrial sectors with durable coatings formulated to protect, increase productivity, and add beauty.
“All of us at Dura Coat are excited about the opportunity to become a part of the Axalta family,” explained Dr. Myung K. Hong, founder, President and Chairman of Dura Coat. “Axalta’s customer focus and global footprint will help open more doors for our products, and will enable us to build on the successful legacy of Dura Coat. The strong commitment to technology that we share will enable us to continue to deliver innovative products and offer them to an ever expanding customer base.”
About Dura Coat Products – Best Paint Solutions for You and the Environment
Since its entrepreneurial start in 1986 by chemist Dr. Myung K. Hong, Dura Coat Products has grown into one of the industry’s most innovative resin and coatings companies. Today, Dura Coat research and development specializes in solving their customers’ most challenging paint problems and creating advanced paint systems in coil and spray coatings. Dura Coat stays committed to meeting unique and specific requirements with eco-friendly solutions that protect our environment and reduce our carbon foot print.
About Axalta Coating Systems – Celebrating 150 Years in the Coatings Industry
Axalta is a leading global company focused solely on coatings and providing customers with innovative, colorful, beautiful and sustainable solutions. From light OEM vehicles, commercial vehicles and refinish applications to electric motors, buildings and pipelines, our coatings are designed to prevent corrosion, increase productivity and enable the materials we coat to last longer. With 150 years of experience in the coatings industry, the 12,800 people of Axalta continue to find ways to serve our more than 100,000 customers in 130 countries better every day with the finest coatings, application systems and technology. For more information visit axaltacoatingsystems.com and follow us @axalta on Twitter and on LinkedIn.
Cautionary Statement Concerning Forward-Looking Statements
This release may contain certain forward-looking statements regarding Axalta and its subsidiaries including those relating to the timing and expected benefits of the Dura Coat Products acquisition. Forward-looking statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements may involve risks and uncertainties, including, but not limited to, the satisfaction of the closing conditions of the transaction (including regulatory approvals); the parties’ ability to consummate the transaction on the anticipated terms and schedule; and the parties’ ability to achieve the expected benefits of the acquisition. Axalta undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise.