DuPont sells auto painting business to Carlyle Group

DuPont Co. has struck a deal to sell its car paint business to Washington-based investment firm Carlyle Group LP for US$4.9 billion.

The transaction is expected to close in the first quarter of 2013.

Wilmington, Del.-based DuPont Co.’s Performance Coatings business unit is expected to generate 2012 sales of $4 billion, according to a news release.

“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, in a press release. “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.”

DuPont’s performance coatings business primarily sells to auto paint refinishers. Ford Motor Co. and General Motors Co. are also key customers.

DuPont said it will still generate more than US$3 billion through sales of advanced materials to the auto industry. As part of the transaction, Carlyle will assume US$250 million of DuPont’s unfunded pension liabilities.