Axalta

Axalta Coating Systems

Axalta Coating Systems

Industry
Industrial
Region/Country
Philadelphia, PA, USA
Fund(s)
Carlyle Europe Partners III
Carlyle Partners V
Acquired
Status
Exited

About Axalta and the Transaction
The Carlyle Group acquired Axalta, formerly known as DuPont Performance Coatings, in February 2013 and took the company public in late 2014.

Axalta is the fourth largest global manufacturer, marketer and distributor of high performance coatings systems. The Company has a nearly 150-year heritage in the coatings industry and is known for manufacturing high quality products with well-recognized brands supported by market-leading technology and customer service. Axalta operates its business in two segments, Performance Coatings and Transportation Coatings, and currently targets four primary end-markets: Refinish, Industrial, Light Vehicle, and Commercial Vehicle. The Company generates approximately 90% of its revenue in markets where Axalta holds the #1 or #2 global market position, including the #1 position in its core automotive refinish end-market with approximately a 25% global market share.

Axalta employs more than 11,000 full-time employees at 35 manufacturing plants, seven major technology centers, and 45 customer training centers across the globe. Axalta is headquartered in Philadelphia, Pennsylvania and conducts business in approximately 130 countries with more than 120,000 customers.

Key Value Creation Metrics

  • Enhanced senior leadership team, adding 12 of 16 senior executives including the CEO & CFO to lead the transition from a subsidiary to a standalone company
  • Accelerated strategic priorities through targeted investments, particularly in emerging markets
  • Simplified organizational structure and reduced corporate costs by realigning the Company’s European manufacturing operations, optimizing procurement, and recruiting key regional and local managers with both operational and commercial leadership experience
  • Guided Axalta to a successful initial public offering (IPO) in November 2014, followed by five additional stock sales, including selling 9.9% of the Company to Berkshire Hathaway in April 2015. Carlyle has exited its investment in the company

Axalta as a Public Company
Carlyle continues to implement profitable growth initiatives globally at Axalta.  As an independent company, Axalta has been able to focus its time and capital exclusively on coatings. The Company is pursuing investments that will potentially generate attractive returns such as low-risk capacity expansion projects in China, Germany, Mexico, and Brazil that will position Axalta to grow with its customers. The Company is also investing in operational improvement initiatives such as the realignment of its European manufacturing operations, a global commercial and comprehensive cost improvement initiative, as well as growing its sales force in emerging markets and end-markets where the Company is currently underrepresented.

Axalta’s Performance
Axalta has a strong financial profile with even greater potential for future growth. Under Carlyle’s ownership, Adjusted EBITDA has increased at a 12% compounded annual growth rate and Adjusted EBITDA margin has improved nearly 500 basis points.