So Long, DPC; Hello, Axalta
A coatings company grounded in the dawn of the Automobile Age is no more, as DuPont Performance Coatings gives way to a new entity called Axalta Coating Systems.
The new identity follows completion of the $4.9 billion sale of DuPont Performance Coatings to The Carlyle Group.
The new Axalta Coating Systems is positioning itself as "a global supplier of coatings to the transportation and industrial sectors," according to its new owner, an asset management group that serves the aerospace, defense, transportation, energy and infrastructure sectors, the companies announced after the deal closed Feb. 1.
"The new name reflects the company's complete focus on the coatings sector and our commitment to performance excellence," Axalta said on its website, which is still under development. "While our name has changed, the fundamentals of our business have not."
End of an Era
DuPont announced the sale last fall, capping months of sale rumors that the company never denied. The DPC unit lagged DuPont's fast-growing science- and biotech-oriented businesses. News of layoffs and a disappointing third quarter followed in October. Though not unexpected, the decision spelled the end of an era.
In 1920, the company became the first to develop a quick-drying, durable lacquer that proved a boon to the mass production industries, including the fledgling automotive industry. The coating, known as Duco, was marketed in 1922 and, within four years, was the standard finish on all General Motors cars, according to DuPont's website.
By mid-decade, the company had rolled out Dulux alkyd resin, a glossy successor to Duco that was used in appliance manufacturing.
Entry into the paint and coatings industry marked DuPont’s first effort to diversify beyond explosives in the years after 1902. Duco became a standard finish for GM cars by the mid-1920s.
"In the mid-1950s, DuPont introduced a new line of cheaper, more durable acrylic coatings," the site says. "Lucite automotive lacquer replaced Duco, and Lucite appliance enamel took the place of Dulux in the appliance market."
What's Changing; What Isn't
Today, DuPont Performance Coatings consists of DuPont Industrial Coatings, DuPont Aviation Finishes, DuPont Commercial Finishes, DuPont Refinish, Standox, Spies Hecker, and Nason Finishes. The portfolio includes automotive OEM coatings, automotive refinish coatings, powder and industrial coatings, and Voltatex Energy Solutions.
For now, Axalta said, the Standox and Spies Hecker brands will continue, as will Cromax and Imron. Axalta will also continue to serve the decorative, architectural, general industrial and job-coater segments of the powder coatings market under the brands Alesta Powder Coatings, NAP-GARD FBE Powder Coatings and ABCITE Powder Coatings.
Officially, the DuPont Performance Coatings name will linger for several more months; the Axalta name will be formally launched in the second quarter of 2013, about the same time the company's new website is up and running.
Until then, Carlyle said:
Continuity in Leadership
Axalta will be led by John G. McCool, who was president of DuPont Performance Coatings and had been with DuPont since 1976.
“In addition to driving performance and excellence, one of our greatest strengths is the systems-based approach we take with our customers,” McCool said in a statement.
DuPont Performance Coatings president John G. McCool will be president of Axalta Coating Systems.
“Along with coatings, we provide customers a full spectrum of tools and services to help them use our products effectively. We offer customers hands-on opportunities to learn how to use these products and applications tools in our 42 training centers throughout the world.
"This capability helps our customers improve their performance and productivity while allowing us to enhance our offerings by gaining a better understanding of customer preferences.”
As an independent company, Axalta Coating Systems "will build on a foundation of more than 90 years in the coatings industry," Carlyle announced. The company serves more than 120,000 customers in 130 countries and provides a full range of coating systems.
“We are excited to invest in Axalta Coating Systems and believe its strong market position and global footprint will enable the company to capitalize on opportunities in rapidly emerging markets such as China and Brazil," said Martin Sumner, principal of The Carlyle Group.
"As experienced investors in the industrial and transportation sectors, the One Carlyle global network can help Axalta Coating Systems grow and create value.”
Charlie Shaver, the company’s Chairman and CEO added, “We look forward to this exciting next chapter for Axalta Coating Systems. Our global scale with 35 plants and seven technology centers around the world, combined with Carlyle’s industrial focus and global network, position us well for the future.”