By Gary Thomas
DuPont Performance Coatings (DPC) has been sold to international alternative asset manager, The Carlyle Group in a cash transaction valued at US $ 4.9 billion. The transaction which is subject to regulatory approval and standard closing conditions is expected to be completed by the first quarter of 2013.
Carlyle Group will fund the investment through stocks from Carlyle Europe Partners III and Carlyle Partners V. DPC which supplies industrial and automotive coatings worldwide envisages revenue exceeding US $4 billion for the year 2012. The company engages a workforce comprising over 11,000 employees. The DPC business will be classified as discontinued operations on the books of DuPont from the third quarter of 2012 on a retroactive basis. The full year earnings per share for 2012 from the suspended operations are expected to be between $ 0.41 and $ 0.47.
Ellen Kullman, DuPont CEO and Chair, stated that inspite of the performance coatings business delivering good results and showing potential for continued growth, the decision to sell was made after serious consideration and revealed that DPC would attain its complete growth potential outside DuPont. Kullman emphasized on DuPont’s continued commitment to cater to the automotive industry by applying its scientific innovations towards the development of light weight vehicles, biobased fabrics for seats, eco-friendly refrigerants and biofuels.
Greg Ledford, Managing Director of Carlyle and Industrial and Transportation team Head, expressed interest in collaborating with management to realize the full capabilities of DPC and stated that Carlyle will back the growth and product development objectives of DPC by means of targeted investments.