US giant swoops for automotive manufacturer
Graphite Capital has agreed to sell U-POL, a manufacturer and distributor of automotive repair and refinishing products based in Northamptonshire, to US-based Axalta Coating Systems in a deal which values the company at £428m.
Founded in 1948, U-POL is a leading manufacturer of repair and refinish products used primarily for automotive refinish and aftermarket protective applications.
The business produces a range of 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.
“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 chief executive officer.
“We also see opportunities for U-POL’s technology in whitespace applications for other areas of our business, including mobility and industrial coatings.”
He added that U-POL’s manufacturing plant and R&D lab in Wellingborough bring important capabilities to the company’s commercial, manufacturing, and technology divisions.
“The two companies’ cultures of innovation, quality, and strong operating principles are exceptionally aligned,” said Troy Weaver, Axalta’s Senior Vice President, Global Refinish Coatings. “We look forward to serving customers with these additional capabilities and to welcoming U-POL’s dedicated team members to the Axalta family.”
U-POL expects net sales of approximately $145m (£105m) and adjusted EBITDA of approximately $38m (£27.5m) for fiscal year 2021.
The transaction is expected to close in the second half of 2021.
Rothschild & Co is serving as financial advisor and Morrison & Foerster is serving as legal counsel to Axalta on the deal.
