XPEL acquires Chinese distributor

XPEL Inc. (NASDAQ: XPEL) acquired assets of its exclusive distributor in China's aftermarket, the company announced. The protective films and coatings provider will own a 76% interest in the entity conducting business in China.

The acquired business generates approximately $45 million to $50 million in annual revenue, which translates to incremental revenue of $13 million to $18 million for XPEL on a pro-forma basis, according to the company statement.

"We've invested heavily in the past several years to establish our direct go-to-market strategy in the top car markets of the world," said Ryan Pape, president and chief executive officer. "China is, of course, the largest car market in the world. With this acquisition we've largely concluded this strategy in our key international markets."

The transaction was completed using a combination of cash, deferred payments and other contingent consideration. XPEL did not disclose the purchase price.

Chris West, vice president of XPEL Asia Pacific, said the acquisition allows the company to build on its foundation in China and facilitates opportunities with original equipment manufacturers and 4S dealerships.

XPEL provides protective films and coatings for automotive, architectural and marine industries. The San Antonio-based company operates globally with a network of trained installers and proprietary software.

You May Also Be Interested In