Carlyle Group acquires DuPont Performance Coatings for $4.9bn
US-based global asset management firm the Carlyle Group has acquired DuPont Performance Coatings (DPC) for $4.9bn in cash (approximately $4bn after-tax) and the assumption of certain liabilities.
The transaction is expected to help the chemical company DuPont remain committed to working with the automotive industry and generate more than $3bn in sales of advanced materials to the sector annually.
DPC executive vice president and chief financial officer Nicholas Fanandakis said DuPont plans to use a portion of the proceeds from the sale of the DPC business to buy back $1bn of the company's common stock during the first half of 2013.
"Additionally, we anticipate using the remaining portion of the DPC sale proceeds to further strengthen our balance sheet, which should give us flexibility to invest in future selective growth opportunities," Fanandakis added.
The subsidiary of DuPont, DPC, is a global supplier of products, services and solutions aimed at improving the automotive refinishing process.
DuPont's performance coatings are also used by original equipment manufacturers, as well as in the aviation and marine industries.