PHILADELPHIA, March 31, 2020 /PRNewswire/ -- Axalta Coating
Systems Ltd. (NYSE: AXTA), a leading global supplier of
liquid and powder coatings, today announced that its Board of
Directors has concluded its previously announced review of
strategic alternatives.
"In light of the dislocation in global markets caused by the
coronavirus pandemic, the Board unanimously determined that
concluding the review of strategic alternatives is in the best
interests of Axalta shareholders at this time," said Mark Garrett, Axalta's Chairman of the Board and
Chair of its Strategic Review Committee. "This decision follows
months of in-depth discussions with a number of interested parties.
Although the process has concluded, our Board will continue to
evaluate all opportunities to enhance shareholder value. I would
like to thank Robert Bryant and the
management team for their hard work in the review process and for
the excellent job they are doing to navigate Axalta through a
global crisis. I'd also like to thank our employees for their
relentless commitment and outstanding contributions to Axalta's
success."
Robert Bryant, Axalta's President
and CEO, commented, "Since announcing the strategic review in June,
we have delivered three consecutive quarters of strong financial
results, including robust operating profit and free cash flow for
the full year 2019. This strong outcome was followed by an
unprecedented decline in global markets in the current quarter,"
Mr. Bryant continued, "As we announced recently, we have taken
swift and decisive action to plan for and address the near-term
impact on customer demand in certain areas of our business. This
includes executing on adjustments to Axalta's cost structure across
the organization. We believe the actions we are taking, coupled
with a strong balance sheet and ample liquidity, will enable us to
emerge from this crisis in a position of strength. Our top priority
is the health of our employees, customers and communities. We will
continue to monitor the situation closely and take further action
as appropriate."
Summary of Strategic Review Process
The Board
initiated a review of strategic alternatives to maximize
shareholder value on June 19, 2019.
To execute the strategic review, the Board engaged Evercore and
Barclays as financial advisors as well as Morrison & Foerster
and Cravath, Swaine & Moore as legal advisors. The Board also
formed a Strategic Review Committee, chaired by Mark Garrett and comprised of a majority of
independent directors, to oversee the review process. Over the
course of the nine-month review, Axalta's Board, led by its
Strategic Review Committee, explored multiple alternatives to
maximize shareholder value, including a comprehensive sale process
for the Company, as well as a concurrent evaluation of Axalta's
operating strategies, core underlying businesses and standalone
value creation potential. Axalta and its representatives
communicated with over 50 participants, including companies in the
coatings, chemical and industrial sectors as well as financial
sponsors throughout the U.S., Europe, and Asia regarding a potential sale of the Company
or components of its business. Axalta signed non-disclosure
agreements with 18 potential purchasers to facilitate due
diligence.
After having extensively evaluated these various alternatives,
the Board determined in consultation with financial and legal
advisers that at this time the ongoing execution of the Company's
strategic plan is the best alternative to maximize value for
Axalta's shareholders.
Cautionary Statement Concerning Forward-Looking
Statements
This release may contain certain forward-looking
statements regarding Axalta, including those relating to Axalta's
strategic plan. 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, our ability
to execute on our strategic plan. Information on potential factors
that could affect Axalta's future results is available in the "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" section within Axalta's most
recent annual report on Form 10-K, and in other documents that we
have filed with, or furnished to, the U.S. Securities and Exchange
Commission. 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.
About Axalta
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.
Axalta Coating
Systems
Two Commerce
Square
2001 Market
Street
Suite 3600
Philadelphia, PA
19103
|
Media
Contact
Robert C.
Ferris
(215)
255-7981
Rob.Ferris@axalta.com
www.axalta.com
|
Investor
Contact
Christopher
Mecray
(215)
255-7970
Christopher.Mecray@axalta.com
www.axalta.com
|
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SOURCE Axalta Coating Systems Ltd.