PHILADELPHIA, Sept. 16, 2019 /PRNewswire/ -- Axalta Coating Systems Ltd. (NYSE: AXTA), a leading global manufacturer of liquid and powder coatings, today announced that it has entered into a definitive agreement to acquire Capital Paints LLC, a UAE-based thermosetting powder coatings manufacturer specializing in architectural powder coatings. The transaction is subject to required regulatory approvals and other customary closing conditions and is expected to close in the fourth quarter of 2019. Financial terms of the transaction were not disclosed.
"With this acquisition, Axalta will expand its footprint in the Middle East and North Africa (MENA) region and add to our strong manufacturing base, paving the way for future business growth in the region," said Sobers Sethi, Vice President and President, Emerging Markets of Axalta.
"This acquisition is in line with our business objective to provide better support and technical services to local customers in the oil & gas and architectural segments, while also helping us enter other key markets in the Middle East region," continued Sethi. "Capital Paints customers will gain access to Axalta products and services that meet divergent needs, such as Nap-Gard® for pipe coatings and Alesta® for architectural coatings. We are excited to bring these products and many other of Axalta's market leading products to customers throughout MENA."
"The addition of Capital Paints to Axalta's portfolio is a great example of our continued expansion in emerging markets and the industrial end market," concluded Mr. Sethi. "We are looking forward to enhancing our position as a global market leader across the UAE and MENA and expect that this acquisition will help to drive growth for Axalta and benefit both new and existing customers."
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 more than 150 years of experience in the coatings industry, the approximately 14,000 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 axalta.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 Capital Paints 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.