M&As: Axalta acquires UK auto refinish firm for US$600 mn; Westfall Technik acquires CPP Global for expansion to China

Liquid and powder coatings supplier Axalta Coating Systems is to acquire U-POL Holdings Limited from Graphite Capital Management and other holders for US$590 million.

Founded in 1948 and based in the UK, U-POL is a leading manufacturer of repair and refinish products used primarily for automotive refinish and aftermarket protective applications. The business produces a wide range of high-quality automotive refinishing products and accessories including fillers, coatings, aerosols, adhesives, and paint related products as well as other automotive aftermarket protective coatings. U-POL sells its products in over 100 countries and is widely known for its leading brands, including Raptor®, Dolphin®, and Gold, among others. Axalta will accelerate growth of U-POL's products by expanding market access through Axalta's existing sales and distribution channels while leveraging U-POL's distribution channels to extend the reach of its Refinish Coatings portfolio to new customers.

"Axalta is the world leader in the premium refinish coatings segment. U-POL's expertise in refinish accessories and protective coatings is highly complementary to Axalta's business and expands our addressable market into the important and growing mainstream and economy-based refinish segment as well as the consumer do-it-yourself (DIY) aftermarket," said Robert Bryant, Axalta's CEO. "We also see opportunities for U-POL's technology in whitespace applications for other areas of our business, including Mobility and Industrial Coatings."

U-POL has a manufacturing plant and R&D lab in Wellingborough, England. It expects net sales of approximately US$145 million and adjusted EBITDA of approximately US$38 million for fiscal year 2021.

The transaction is expected to close in the second half of 2021, subject to clearance under applicable antitrust laws and other customary closing requirements.

In other news, Westfall Technik, a global holding company that provides manufacturing solutions for the production of plastic parts in the medical, packaging, and consumer goods industries, announced the acquisition of Carolina Precision Plastics, LLC (CPP Global) and its wholly owned subsidiaries. Terms were not disclosed.

The deal strengthens Westfall’s geographic footprint by adding its first plants in the southeastern US, specifically in Mocksville and Asheboro, NC, as well in Kaiping, China, in Guangdong Province. “This provides a further supply-chain advantage to Westfall when it comes to serving key customers in both the packaging and healthcare sectors,” said Merritt Williams, the firm’s Chief Commercial Officer. “CPP’s North Carolina plants are ideally located to serve the multitude of brand owners with a manufacturing presence in the surrounding area.”

CPP, which runs about 100 injection moulding machines in its three facilities, also brings expertise in vital secondary services, such as high-volume, fully automated assembly and sophisticated decorating capabilities. In total, CPP’s three plants cover some 335,000 sq ft of manufacturing space.

“This is just the next step in creating a truly world-class molding and tooling business that is built on a strong culture and unquestionable customer service,” according to Westfall CEO/Founder Brian Jones.

A leader in North America in the injection moulding of heavy-wall PET jars, CPP also operates an innovative, collaborative design centre and has a strong sustainability profile. The firm is a significant user of recycled resins and biopolymers in its products.

“This highly strategic, synergistic deal greatly strengthens our presence in the fast-moving consumer goods segment,” said Mark Gomulka, Westfall’s COO. “CPP Global is a valued packaging supplier to several leading personal care and beauty companies, such as L’Oréal (serving their L’Oréal Paris and Kiehl’s brands), Estée Lauder, and Burt’s Bees, among others.”

For CPP Chief Executive Officer Brian Tauber, the partnership with Westfall offers a clear path forward for continuing the upward growth trend that CPP Global is experiencing right now.

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