DuPont sell car paint business Carlyle $4.9 billion

DuPont to sell car paint business to Carlyle for $4.9 billion

6:15 AM, 31st August 2012
DuPont to sell car paint business to Carlyle for $4.9 billion
Nicholas Fanandakis, Chief Financial Officer, DuPont.

CHARLESTON,US: DuPont struck a deal to sell its slow-growing car paint business to investment firm Carlyle Group LP for $4.9 billion cash as it seeks to focus on higher-growth areas such as agriculture and nutrition. A sale of the performance coatings unit to Carlyle, one of private equity’s top investors in industrial companies, allows DuPont to cut debt and better positions it for acquisitions in priority sectors such as advanced materials and biotechnology.

The sale caps a nearly eight-month-long auction of the car paint unit, which has 11,000 employees and is expected to generate revenues of more than $4 billion this year. The transaction is expected to close in the first quarter of 2013, subject to regulatory approvals. DuPont said it will still generate more than $3 billion through sales of advanced materials to the auto industry. As part of the transaction, Carlyle will assume $250 million of DuPont’s unfunded pension liabilities.

“We’re going to look to strengthen that balance sheet and then we will look to execute against our financial principles, which I’ve talked about is around taking any excess cash and providing that back to shareholders unless we have a compelling investment opportunity within the company,” said Nicholas Fanandakis, Chief Financial Officer, DuPont.

© Reuters News



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