The Carylyle Group, a global alternative asset manager, has completed its acquisition of DuPont Performance Coatings for $4.9 billion. Moving forward, the company will be known as Axalta Coating Systems, a global supplier of coatings to the transportation and industrial sectors.
“We are excited to invest in Axalta Coating Systems and believe its strong market position and global footprint will enable the company to capitalize on opportunities in rapidly emerging markets such as China and Brazil," said Martin Sumner, principal of The Carlyle Group. "As experienced investors in the industrial and transportation sectors, the One Carlyle global network can help Axalta Coating Systems grow and create value."
Charlie Shaver, Axalta Coating Systems's chairman and CEO, said he is looking forward to this exciting next chapter for the company. "Our global scale with 35 plants and seven technology centers around the world, combined with Carlyle’s industrial focus and global network, position us well for the future.”
As an independent company, Axalta Coating Systems will build on a foundation of more than 90 years in the coatings industry. Axalta Coating Systems serves more than 120,000 customers in 130 countries and provides customers with a full range of coating systems.
“In addition to driving performance and excellence, one of our greatest strengths is the systems-based approach we take with our customers,” said John G. McCool, president of Axalta Coating Systems. “Along with coatings, we provide customers a full spectrum of tools and services to help them use our products effectively. We offer customers hands-on opportunities to learn how to use these products and applications tools in our 42 training centers throughout the world. This capability helps our customers improve their performance and productivity while allowing us to enhance our offerings by gaining a better understanding of customer preferences.”
According to news release, Axalta Coating Systems will continue to do business as DuPont Performance Coatings for the next several months, until the new name is formally launched in the second quarter of 2013. The company’s beta website AxaltaCoatingSystems.com is under development and will enable visitors to navigate to sites that contain information about its products and services.
Nicholas C. Fanandakis, DuPont's executive vice president and chief financial officer, said he intends to use a portion of the proceeds from the sale of the DPC business to buy back $1 billion of the company’s common stock during the first half of this year. “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 said DuPont remains committed to serving the automotive industry following this transaction, and he expects the company will generate more than $3 billion in sales of advanced materials to the auto industry annually.
ABOUT AXALTA COATING SYSTEMS
Axalta Coating Systems develops, manufactures and sells coatings and application tools to automobile repair body shops and original equipment manufacturers in the automotive and heavy-duty truck markets. Its strong market positions are supported by global brands including Standox®, Spies Hecker®, Cromax®and Imron®. The company’s technology leadership is highlighted by its best-in-class third generation of waterborne systems developed to address growing customer requirements for higher productivity and environmentally friendly coatings. Axalta Coating Systems also serves the decorative, architectural, general industrial and job-coater segments of the powder coatings market under the brands Alesta® Powder Coatings, NAP-GARD® FBE Powder Coatings and ABCITE® Powder Coatings.