The Carlyle Group to Buy DuPont Performance Coatings Business for $4.9 Billion - BodyShop Business

The Carlyle Group to Buy DuPont Performance Coatings Business for $4.9 Billion

"...we have determined that DPC's full growth potential would be best realized outside DuPont and through the sale to Carlyle," says DuPont Chair and CEO Ellen Kullman.

From aftermarketNews.com

Global alternative asset manager The Carlyle Group and DuPont
have signed a definitive agreement whereby Carlyle will purchase the
DuPont Performance Coatings (DPC) business for $4.9 billion in cash. The
transaction is expected to close in the first quarter 2013, subject to
customary closing conditions and regulatory approvals.
 
DPC 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. The investment will be funded with equity from Carlyle
Partners V and Carlyle Europe Partners III.
 
“DuPont Performance Coatings is a leader in the automotive and
industrial coatings sectors with world-class products and customer
service. 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,” said DuPont Chair and CEO Ellen Kullman. “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.”
 
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.
 
“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.
 
According to Mike Bennett, North American marketing manager for DuPont
Performance Coatings, Carlyle’s acquisition of the business will allow
DPC to meet its future growth targets.
 
"This allows us to really focus on our marketplace, allows us to
reinvest the funds back into the market with the intent to grow,"
Bennett said. "Carlyle has indicated that they are excited to help us
meet our growth potential. With the capital investment we’re going to
get from that, that is our intent."
 
Bennett also confirmed that DPC’s current management team will remain in place; however, the brand name will change.
 
"Over a period of time, the brand name will transition to something else,
but the products will remain available; it will just be under a
different logo at some point," Bennett said.
 
Greg Ledford, Carlyle managing director and head of the Industrial and
Transportation team, said, “DuPont Performance Coatings is a successful
business with attractive market positions, next-generation technology
and established brands. 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, added that Carlyle looks forward to building on DPC’s strong
market presence to accelerate growth in emerging markets, particularly
in China and Brazil.
 
Carlyle’s other industrial and automotive investments include Allison
Transmission, Hertz and PQ Corp., as well as recent commitments to
invest in Hamilton Sundstrand Industrial, Sunoco’s Philadelphia refinery
and regional rail freight operator Genesee & Wyoming.


More information:

The Carlyle Group Closes Acquisition of Service King Collision Repair Centers

Private Equity Partnership Purchases Sullair Corporation

You May Also Like

Top 5 Stories of the Week

A recap of the top five stories on bodyshopbusiness.com during the week of July 15.

Maaco Opens 16th Location in Illinois

Maaco announced that Bobby Kehagias has opened Maaco’s newest retail center located in Waukegan, Ill.

Read more here.

Crash Champions Expands in New Hampshire

Crash Champions announced it has expanded its New Hampshire footprint with the successful acquisition of Auto City Collision Center.  

PPG Recognized as Best Place to Work for Disability Inclusion

This is the third consecutive year PPG has earned this recognition from the Disability Quality Index.

NABC Donates Recycled Rides to Denver-Area Military Families

The NABC, GEICO, Allstate and Crash Champions recently donated refurbished vehicles to two military families in the Colorado State Capitol.

Tesla Model Y Secures Position as World’s Best-Selling Car in 2023

Sales of the Tesla Model Y totaled 1.22 million units globally, up by 64% from 2022.

Car ADAS Announces First Licensee in Las Vegas

Owners Tanner Scott, Cam Scott and Aja Domingo are proud to unveil their first calibration center addressing the increasing demand for ADAS in the region.

Other Posts
I-CAR Announces 2024 Board of Directors Election Results

Four members have been elected to join I-CAR’s board of directors.

Purnell Body Shop Joins CSN Collision

CSN Collision has announced the addition of Purnell Body Shop of Elkton, Md., to its network.

Repairify, NAPA Launch asTech Mechanical

The new device enables repair shops to connect directly to OE tools operated by certified technicians.

Professionals Auto Body Announces FCA Certification

Professionals Auto Body of Duncansville, Pa., announced that is has achieved FCA certification, which includes Chrysler, Dodge, Fiat, Jeep and Ram.