Private equity firm Carlyle Group has struck a deal with DuPont to buy its DuPont Performance Coatings for $4.9 billion in cash.
The private equity firm said it was interested in Dupont's coating business because of the unit's technology, its brands, and its ability to expand in developing markets, such as China and Brazil. The business is expected to generate about $4 billion in revenue this year,
“DuPont Performance Coatings is a leader in the automotive and industrial coatings sectors with world-class products and customer service,†DuPont's chief executive Ellen Kullman said in a statement on Thursday. “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.â€
Over the years, Carlyle has made several bets in the industrial and transportation markets, including Allison Transmission and Hertz Global Holdings, which it acquired in 2005 and took publ ic in 2006. In July, Carlyle Group also partnered with BC Partners to buy Hamilton Sundstrand Industrial from United Technologies for $3.46 billion.
The deal is expected to close in the first quarter of next year.
