Axalta Announces Sale of Shares to Berkshire Hathaway

Axalta Announces Sale of Shares to Berkshire Hathaway

Berkshire Hathaway purchases 20 million shares for $560 million.

Axalta Coating Systems Ltd. announced that an affiliate of Berkshire Hathaway Inc. has entered into a definitive stock purchase agreement with certain affiliates of The Carlyle Group for the purchase of a total of 20 million of Axalta’s common shares for an aggregate purchase price of $560 million, or $28 per share. Axalta will not receive proceeds from the sale of the shares. In connection with the purchase, Berkshire Hathaway agreed that it would not dispose of the shares for 90 days following the consummation of the sale. Axalta has agreed to provide Berkshire Hathaway with certain registration rights following the expiration of that 90-day period.

The shares are being offered and sold in a private placement pursuant to Section 4 of the Securities Act of 1933, as amended (the “Securities Act”). The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

“We are pleased to have Berkshire Hathaway Inc. take this share ownership position in Axalta,” said Charlie Shaver, chairman and CEO. “Berkshire is the type of quality investor that Axalta has been fortunate to attract since our IPO last year. We believe this investment shows Berkshire’s support of our strategy to reshape ourselves into a growth and customer-oriented world-class coatings company.”

You May Also Like

Top 5 Stories of the Week

A recap of the top five stories on bodyshopbusiness.com during the week of May 13.

When Will OEM Referrals Replace DRP Referrals?

When will insurer DRPs end and car manufacturers dictate where the car gets repaired?

Read more here.

Executive Interview: Matt Ebert, Founder and CEO of Crash Champions

Jason Stahl interviews Matt Ebert on his rise from technician to leader of a 600-plus shop network.

Association News

The latest association news appearing on bodyshopbusiness.com.

PRT Launches 59 New Complete Strut Assemblies

Extending PRT’s product portfolio in North America, the new release represents nearly 12M vehicles in new coverage.

SUN Collision to Demo 1Search Plus Technology at Regional Conferences

SUN Collision will be showcasing its collision repair technology at the Southeast Collision Conference May 16-18 and Midwest Collision Repair Conference May 31-June 1.

TechForce Foundation, SkillsUSA Partner to Solve Tech Shortage

The mutually beneficial collaboration will help students garner the skills, education and support needed to successfully develop careers as professional technicians.

Other Posts

SEMA Appoints New Chief Financial Officer

Ryan Stutzman will replace George Afremow, current vice president and chief financial officer, who will retire in June after 12 years with the association.

Car ADAS Announces Opening of New Calibration Center 

Car ADAS Solutions has announced the opening of a new calibration center named ADAS Solutions in Lansing, Mich.

Transtar Announces Agreement for Axalta to Acquire The CoverFlexx Group

Axalta Coating Systems has signed a definitive agreement to acquire Transtar Holding Company’s subsidiary The CoverFlexx Group.

SUNY Morrisville Named No. 1 MCAP School in Country

The school’s Mopar Career Automotive Program students were re-crowned champions in the first-ever Mopar Career Automotive Program Bracket Challenge.