Axalta Coating Systems announced that its board of directors has initiated a comprehensive review of strategic alternatives to maximize shareholder value.
The board has formed a strategic review committee, which will be chaired by the independent presiding director of Axalta’s board, Mark Garrett, and also will include Axalta CEO Robert Bryant and Axalta Independent Director Samuel Smolik.
“Axalta’s board is committed to maximizing value for all shareholders and has initiated a comprehensive review of strategic alternatives, including a potential sale of the company, changes in capital allocation, and ongoing execution of our strategic plan,” Garrett said. “Axalta’s management team and board have a strong track record of pursuing M&A opportunities, along with other initiatives and alternatives, to maximize shareholder value.”
“Axalta continues to execute on its long-term strategy, delivering significant cost savings to bolster our industry-leading margins, re-deploying free cash flow to drive accretive organic and inorganic growth initiatives, and returning more than $380 million to shareholders over the last two years. Given Axalta’s progress in recent years and its leading position as a global coatings company – with 90% of 2018 sales derived from end markets where we have either the No. 1 or No. 2 global position – we believe that now is the right time to review a full range of options in an effort to maximize value for all shareholders.”
No assurances can be given regarding the outcome or timing of the review process, the company noted. Axalta also said it doesn’t intend to make any further public comment regarding the review until it has been completed or the company determines that disclosure is required or beneficial.
The board has engaged Evercore and Barclays as financial advisors and Morrison & Foerster LLP as legal advisor to assist in its review.
