DuPont Said to Consider Sale of Coatings Division
Bloomberg first reported the potential sale, speculating that the sale may bring as much as $4 billion.
Bloomberg also reported that the company has hired Credit Suisse to look for potential buyers and Greenhill & Co. to negotiate the sale of the powder coatings unit within the division.
Reports speculate that PPG Industries, BASF and AkzoNobel would be potential buyers of the division. DuPont sells its coatings to automotive companies such as Ford and General Motors, as well as automotive paint refinishing companies.
DuPont Chairman and CEO Ellen Kullman declined to comment on the speculation during a conference call.
The performance-coatings operations accounted for about 12 percent of DuPont’s $31.5 billion in revenue last year and 5.1 percent of operating income. Coatings for refinishing vehicles accounted for almost $1.7 billion of sales last year, new-car coatings totaled $1.2 billion, and sales of powder and liquid coatings were about $950 million, according to DuPont.