PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Paint and Coatings Industry News

Main News Page


DuPont Coatings Unit Sold for $4.9B

Thursday, August 30, 2012

More items for Coating Materials

Comment | More

DuPont Performance Coatings, one of the world’s largest automotive coatings suppliers, has reached the finish line.

 DuPont

 Photos: DuPont

DuPont’s Performance Coatings includes one of the world’s largest automotive paint units as well as aviation, industrial and commercial finishes.

The company, also a global industrial coatings supplier, will be sold to The Carlyle Group, a global asset management company, for $4.9 billion in cash, the companies announced Thursday (Aug. 30).

DuPont Performance Coatings consists of DuPont Industrial Coatings, DuPont Aviation Finishes, DuPont Commercial Finishes, DuPont Refinish, Standox, Spies Hecker, and Nason Finishes. The business has more than 11,000 employees and expects more than $4 billion in 2012.

Managing $156 billion in assets, Carlyle’s core industries include aerospace and defense, transportation, energy and power, and infrastructure. The DPC acquisition will be funded with equity from Carlyle Partners V and Carlyle Europe Partners III.

The deal is expected to close in the first quarter of 2013, pending approvals.

Long-Awaited Sale

The impending sale of DuPont Performance Coatings has been something of an open secret for months.

DuPont CEO Ellen Kullman told reporters last December that the poorly performing business would get “a chance” to improve before DuPont looked at “alternatives, whatever that means.”

 DuPont
The coatings unit has not performed well, compared with other DuPont businesses, including health care and agriculture.

Since then, a variety of prospective suitors for the company have been widely reported. DuPont did not confirm any of the reports but also did not bother to refute them.

DuPont Performance Coatings was formed in March 1999 by the merger of Herberts GmbH and DuPont Automotive Finishes. The unit sells its coatings to auto producers like Ford and General Motors as well as to Maaco and other auto refinishers.

Currently, DPC has the worst outlook in DuPont’s increasingly science- and biotech-oriented portfolio, where the agriculture, industrial biosciences, and nutrition and health segments have been the recent standouts.

‘World-Class Products’

In an upbeat statement Thursday, Kullman said the sale followed “a careful review” of DPC’s “growth potential.”

“DuPont Performance Coatings is a leader in the automotive and industrial coatings sectors, with world-class products and customer service,” the statement said. “The business continues to grow and deliver solid results.

“After a careful review, however, we have determined that DPC’s full growth potential would be best realized outside DuPont and through the sale to Carlyle.

“This transaction is consistent with our vision to be the world’s most dynamic science company and long-term strategy of driving competitive advantages in agriculture and nutrition, advanced materials and biotechnology, which represent high-growth, high-margin opportunities.”

‘Attractive Market Positions’

Greg Ledford, Carlyle Managing Director and Head of the Industrial and Transportation team, said DPC offered “attractive market positions, next-generation technology and established brands.”

He added, “Through targeted investments, we will support DPC’s product development and growth objectives as it transitions to a stand-alone company. We look forward to working with management to fully realize DPC’s great potential.”

Gregor Böhm, Managing Director and co-head of Carlyle’s Europe Buyout team, called DPC “a technology innovator” and said Carlyle would focus on building the coatings company’s presence “in emerging markets, particularly in China and Brazil.”

Kullman said DuPont remained committed to serving the auto industry and, after the sale, would generate more than $3 billion in sales of advanced materials to the industry.

“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.

   

Tagged categories: Acquisitions; Automotive coatings; Coatings manufacturers; DuPont; High-performance coatings; Mergers; Protective coatings

Comment Join the Conversation:

Sign in to our community to add your comments.

International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment


    Sherwin-Williams
    Sherwin Williams

    • Extends Service Life
    • Single Coat Application
    • Cure to Service in 24 Hours


    Mitsubishi Gas Chemical America
    Performance Amine 1,3-BAC

    A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.


    BASF
    New resins from BASF will have metals loving water:

    Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
    polyorders@basf.com
    800-231-7868


    Wasser High-Tech Coatings Inc.
    Wasser Coatings Protect

    some of the most important bridges in the country; learn about our NEPCOAT-approved system and our entire range of MCU & Polyurea coatings. 1-800-627-2968 www.wassercoatings.com


    Carboline Company
    Hyrdrocarbon Fire & Jet Fire Protection

    Pyroclad X1 is the latest breakthrough in epoxy based intumescent fireproofing technology


    ITW Binks
    Built for Tough Jobs

    From Epoxies to Urethanes to other high solid coatings, the new Binks Airless 75 delivers a great finish using an ergonomic design. Visit binks.com for more information.

  •  
     
     
    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker JPCL Europe

     
    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
     

    © Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com