Axalta, a leading global supplier of liquid and powder coatings, announced today that it has entered into a definitive agreement to acquire Anhui Shengran Insulating Materials Co, Ltd ("Anhui Shengran"), a leading Chinese producer of high-quality wire enamels used in a wide range of consumer electronics, electric vehicle and industrial applications. The transaction is expected to close in Q2 2021, subject to customary closing conditions. Financial terms have not been disclosed.
The addition of Anhui Shengran will be highly complementary to Axalta’s existing Energy Solutions portfolio. The acquisition will add new wire enamel products and capabilities to enhance its offerings to customers across several end markets, including automotive, renewable energy and consumer electronics. The additional production capacity will further support Axalta’s expansion in rapidly growing Asian markets.
"Anhui Shengran’s wire enamel products and capabilities are highly complementary to our growing Energy Solutions business," said Shelley Bausch, Senior Vice President of Global Industrial Coatings at Axalta. "This will be a solid platform for further specialisation and growth as we support key customers in China. I am also excited to welcome the Anhui Shengran team to Axalta."
"It was important to me that we were acquired by a company I could trust to treat my employees well and I believe Anhui Shengran is in good hands," said Zhangying Tu, Executive Director of Anhui Shengran. "We are excited to become part of Axalta and we look forward to working together to add value and increase market share in the growing Energy Solutions market in China."
With three distinctive product segments – wire enamels, impregnating resins and electrical steel coatings – Axalta’s Energy Solutions business provides a comprehensive portfolio of innovative and ecologically responsible insulating solutions for customers in new energy vehicles and other industrial markets. Axalta’s products improve the efficiency of electric motors, extend the longevity of treated parts and help customers meet sustainability goals and requirements.
For more than 75 years, Axalta’s Energy Solutions business has been a global leader in the manufacturing of high-quality and high-performance electrical insulating materials. Through improved utilisation of operating synergies, R&D capacity development and the enrichment of its product portfolio, Axalta is rapidly growing its wire enamel product offerings globally and in China.
