XPEL Expands Its International Footprint

XPEL Inc., a global provider of protective films and coatings, announced that it has acquired the assets of the exclusive distributor of XPEL’s products in the aftermarket in China.

Ryan Pape, president and chief executive officer of XPEL, commented, “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. 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 acquired business is expected to have annual revenues of approximately $45–$50 million, which adds incremental revenue of approximately $13–$18 million for the company on a pro-forma basis, XPEL officials stated in a press release.

Acquisition Will Allow XPEL to Streamline Its Efforts in China

Chris West, VP of XPEL Asia Pacific, said, “Our distributor has done an amazing job helping cement XPEL as the premier brand in China for automotive films, and this acquisition allows us to build on that foundation. We’re excited to add to our team in China, and we believe our direct involvement will facilitate more OEM and 4S opportunities while allowing us to be more efficient and move faster to meet the needs of our Chinese customers.”

The transaction structure will result in the company owning a 76% interest in the entity conducting business in China. The purchase was completed using a combination of cash, deferred payments and other contingent consideration, noted the release.