Global coatings giant looks to expand MENA offering with regional architectural powder coatings manufacturer
Global liquid and powder coatings manufacturer Axalta has entered into a “definitive agreement” to acquire Capital Paints LLC, a UAE-based thermosetting powder coatings manufacturer specialising in architectural powder coatings.
Announcing the acquisition, Axalta said the transaction is subject to required regulatory approvals and other customary closing conditions and is expected to close in the fourth quarter this year. The financial terms of the transaction have not been disclosed yet.
Sobers Sethi, Axalta vice president and president, Emerging Markets, said: “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.
“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. 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.”
Sethi added that the addition of Capital Paints to Axalta’s portfolio is “a great example of our continued expansion in emerging markets”. Axalta is looking forward to enhancing its position as a global market leader across the UAE and MENA, he said, and the company expect that “this acquisition will help to drive growth for Axalta and benefit both new and existing customers”.