Axalta said its board has initiated a comprehensive review of strategic alternatives — including a potential sale — to maximize shareholder value.
The board has formed a strategic review committee chaired by Mark Garrett, the independent presiding director of the board.
"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," CEO Robert Bryant said in a statement.
Why It's Important
Axalta, the erstwhile coating business of DuPont de Nemours Inc (NYSE: DD), has had a checkered history since its inception, with failed takeover discussions and frequent leadership changes.
Following a spin-off, DuPont sold the business to The Carlyle Group LP (NASDAQ: CG) in early 2013. In a little over a year, the private equity firm publicly listed the company.
In October 2017, Axalta and Dutch paint company Akzo Nobel NV (OTC: AKZOY) were in talks regarding a potential merger. The talks collapsed after Nippon Paints entered the fray for Axalta with an all-cash bid in November of the same year. The two companies could not reach an agreement with regard to a potential merger.
Axalta replaced then-CEO Terrence Hahn in October 2018 within a month of his appointment, citing undisclosed conduct that the company termed as inconsistent with its policies.
Since then, the company has been led by Bryant.
At last check, Axalta shares were rallying to the tune of 14.45%.
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