DuPont Co.'s car paint business has been sold to investment
firm Carlyle Group for $4.9 billion cash, which at the moment has unknown
repercussions for the resin line at DuPont's Fort Madison, Iowa, plant.
The sale is expected to close in the first quarter of 2013, and affect 11,000 DuPont employees. Of the 150 employees at the Fort Madison facility, about 50 work on the resin line, which falls under the transaction.
"We are in the process of sorting through all the implications of how this decision will affect the Fort Madison site," said Fort Madison plant manager Warren Hoy.
The Fort Madison plant has three lines: a digital printing line that makes inks for computer printers, a specialties line that makes dyes for Kevlar fabric used in military clothing and the resin line. The resins are shipped to other DuPont facilities to be used in paints for the automotive industry.
"We will be making resin today, resin tomorrow and resin in the future," Hoy said.
What will be figured out in time will be whether the employees on the resin line will stay in Fort Madison but work for Carlyle or the jobs will be shipped to another location.
"We anticipate that a new organization will be formed for that unit, and the employees assigned to that unit will become employees of a new company owned by the Carlyle Group," Hoy said in a statement. "We expect to begin a process to staff the new organization soon. This transition will take some time."
The sale concluded an eight-month auction of the DuPont Performance Coatings division. Carlyle, a Washington, D.C.-based firm, outbid Apollo Global Management and a consortium of KKR & Co. and Onex Corp. The DuPont division is expected to generate $4 billion in revenues this year. Ford Motor Co., General Motors Co., Maaco and other auto paint refinishers are a few of the division's key customers. Carlyle will assume $250 million of DuPont's unfunded pension liabilities.
Carlyle, a global asset manager, has expertise in various fields such as industrial, technology, business services, defense and government services and many other industries.
According to Thomson Reuters data, Carlyle has done 12 private equity deals in 2012 totaling $15.3 billion in transaction volume.
Most Popular Stories
- Social Media Initiatives Should Follow Customers' Lead
- Apple CEO: Offshore Units Not a 'Tax Gimmick'
- SEO Traffic Lab Celebrate Wins at Digital Marketing Event 'Internet World 2013' in London
- U.S. Senate Accuses Apple of Large-scale Tax Avoidance
- Marketo Makes a Mint in IPO: Stock Shoots Up More than 50 Percent
- Bieber Booed at Billboard Awards
- Crude Oil Up, Gasoline Down
- Apple Said to Duck Billions in Taxes
- UTEP Water Recycling Project Wins Venture Titles
- Georgia GOP Preaches Minority Outreach