Axalta Coating Systems Completes Acquisition of High Performance Coating in Southeast Asia
Axalta Coating Systems (NYSE: AXTA) has completed the acquisition of High Performance Coating Sdn. Bhd, a Southeast Asian leader in refinish coatings. The acquisition gives Axalta, a global supplier of powder coatings and performance liquid for industry and commercial vehicles, superior refinish capabilities in the region. In addition, Axalta will be in the position to offer a far broader range of products and solutions to its clientele through an expanded sales and service network.
Celebrating 150 Years of Innovation
Axalta, which recently showcased its new Energy Solutions products family at the Shanghai World Expo Exhibition Convention Center, has a 150 year track record in innovation, growth and leadership in the coatings industry. With a range of products that are designed to be aesthetically pleasing and functional, Axalta offers sustainable solutions for preventing corrosion, improving productivity and increasing product lifespan.
Axalta serves over one hundred thousand customers per day in 130 countries. The acquisition of High Performance Coating’s products, manufacturing capabilities and distribution network is expected to benefit existing Axalta customers and to enhance the firm’s service delivery in the region.
Nimble and Flexible
High Performance Coatings, established in 1996 will continue to retain its own products under current brand names including HIPIC, Nebula and Marvel. The company will remain agile and flexible going forward, able to respond quickly to customer demands whilst benefiting from the support of Axalta’s global refinish capabilities.
Axalta already operates extensively in the South and East Asian market, serving customers in the refinish and industrial end markets.
Impact on Executive Search and Chemical Coatings Recruitment
Any acquisition will impact on the culture of an organisation and transparency is key to minimising the impact on retention. The precise effect of Axalta’s acquisition in the context of possible redundancies is not yet clear. However, planning for the future will no doubt require a focus on aligning talent strategies with business objectives in order to meet specific challenges emanating from the acquisition itself.
Where Axalta will now benefit from High Performance Coatings’ sales and service network, those sections of the workforce that generate a higher share of value may be in high demand but low supply. Executive search recruitment strategies will need to focus on chemical coatings recruitment in order to develop this critical talent pool. For Axalta to best leverage this acquisition, focused recruitment will almost certainly prove crucial.
If change and culture management are mishandled, the uncertainty created may persuade key staff to look elsewhere for employment. What therefore seems certain in the Axalta merger is that executive search services will have a key role to play in talent management strategies for all parties in the coming months.