Coatings World - September 2012

DuPont sells coatings business for $4.9 billion

Global alternative asset manager The Carlyle Group and DuPont signed a definitive agreement whereby Carlyle will purchase DuPont Performance Coatings (DPC) 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 con-
tinues to grow and deliver solid results.
After a careful review, however, we have
determined that DPC’s full growth poten-
tial 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 sci-
ence company and long-term strategy of
driving competitive advantages in agricul-
ture and nutrition, advanced materials
and biotechnology, which represent high-
growth, high-margin opportunities.”
“DuPont Performance Coatings is a
successful business with attractive market
positions, next-generation technology and
established brands,” said Greg Ledford,
Carlyle managing director and head of the
industrial and transportation team.
“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.”
“DuPont Performance Coatings is a
technology innovator and we look forward
to building on its strong market presence to
accelerate growth in emerging markets, par-
ticularly in China and Brazil,” said Gregor

Böhm, managing director and co-head of Carlyle’s Europe buyout team.

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.

Beginning with the third quarter 2012, DuPont will classify and report results of DPC as discontinued operations on a retroactive basis.

Carlyle’s industrial and automotive investments include Allison Transmission, Hertz and PQ Corporation, as well as recent commitments to invest in Hamilton Sundstrand Industrial, Sunoco’s Philadelphia refinery and regional rail freight operator Genesee & Wyoming.

BASF sells its German and French decorative paints business Relius to Prosol

BASF and Prosol Lacke + Farben GmbH signed a contract for the sale of the decorative paints business of Relius Coatings GmbH & Co. KG in Germany and Relius France SAS in France. The business encom-passes construction paints and plaster as well as varnishes and glazes for construction application and is mainly based in Germany, France and some other selected countries in Europe. The sale of the business includes the Memmingen site in Germany as well as 30 distribution points in Germany and France. The transfer is scheduled to be completed on November 30, 2012. The two parties agreed to not disclose any information on the purchase price.

The decorative paints business of Relius in the Netherlands is not part of the transaction. BASF is currently negotiating

the sale of this part of the Relius Coatings business. The industrial coatings business of Relius Coatings at the Oldenburg site in Germany is also not affected and will remain part of BASF.

“Relius Coatings has a very experienced team, state-of-the-art sites and well established brands. We are confident that this business can have a successful perspective at Prosol that has its core competencies in construction paints,” said Markus Kamieth, president of BASF’s coatings division.

Prosol is a leading wholesale company for paints and coatings. The company was founded in 1949 and employs 500 employees at 40 sites. The product range comprises decorative paints, automotive refinish paints, industrial coatings and wood coatings of leading manufacturers.

CIN invests 12 million euros in Maia plant

CIN, Iberia’s leading paint and varnish company, unveiled plans to invest 12 million euros in increasing the manufacturing capacity of its plant producing powder paints for the industrial sector, in Maia.

“We have been turning away cus-
tomers because we do not have any more
capacity. It was essential to increase the
capacity in a segment - Industrial Finishes
- which is geared towards exports and
which has ample business potential for the
CIN Group,” said João Serrenho, chair-
man of the CIN Group. “Our products
are well accepted by foreign markets and
requests are regularly made.”
The investment is scheduled for vari-
ous phases over five years. The first phase
has already begun. It comprises a total of
six million euros and will be completed in
July this year.

Powder paints currently represent 11 percent of the group’s total turnover. The group will produce an additional 50 percent in the first phase, reaching 10,000 tons per year. This increase in production will be almost entirely channelled for export.