US investment group Carlyle has agreed to buy the performance
coatings business of DuPont for $4.9 billion in cash, the
companies said on Thursday.
The transaction is expected to close in the first quarter
2013, subject to customary closing conditions and regulatory
DuPont Performance Coatings is a global supplier of vehicle
and industrial coating systems with 2012 expected sales of more
than $4 billion and more than 11,000 employees.
DuPont Performance Coatings is a leader in the
automotive and industrial coatings sectors with world-class
products and customer service, said DuPont CEO Ellen
Kullman. The business continues to grow and deliver solid
After a careful review, however, we have determined
that DPCs full growth potential would be best realized
outside DuPont and through the sale to Carlyle, she
Gregor Böhm, managing director and co-head of
Carlyles Europe buyout team, called the performance
coatings segment a technology innovator.
We look forward to building on its strong market
presence to accelerate growth in emerging markets, particularly
in China and Brazil, said Böhm.
Kullman stressed that DuPont remains committed to serving
the automotive industry. Following the closing of this
transaction, DuPont will generate more than $3 billion in sales
of advanced materials to the auto industry, she said.
We will continue to work closely with automotive
customers to apply our science-powered innovations related to
light weighting of vehicles, revolutionary and environmentally
friendly refrigerants, biobased seat fabrics and headliners,
and next-generation biofuels, Kullman said.
As part of the transaction, Carlyle will assume $250 million
of DuPonts unfunded pension liabilities.
Carlyles industrial and automotive investments include
Allison Transmission, Hertz and PQ Corp., as well as recent
commitments to invest in Hamilton Sundstrand Industrial,
Sunocos Philadelphia refinery and regional rail freight
operator Genesee & Wyoming.