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Report: Carlyle Nears $5B Deal for DuPont's Auto Paint Unit

DuPont Research Center


Private-equity giant the Carlyle Group (CG) is reportedly on the verge of scooping up DuPont’s (DD) auto paint business in a deal worth almost $5 billion.

According to the New York Post, the Carlyle bid values the business at about eight times earnings before interest, depreciation, taxes and amortization -- slightly higher than DuPont had anticipated.

If the deal is sealed, Carlyle would have beaten out bids from rival private-equity firms Apollo Management, Blackstone (BX) and KKR (KKR).

DuPont’s auto paint business serves auto makers General Motors (GM) and Ford (F) and its primary clients are Maaco and other auto-paint refinishers.

The potential acquisition comes just weeks after Carlyle teamed up with BC Partners to acquire industrials company Hamilton Sundstrand from blue-chip conglomerate United Technologies (UTX) for $3.5 billion.

Shares of DuPont gained 0.69% to $49.81, while Carlyle ticked up 0.86% to $24.56.

Based in Washington, D.C., Carlyle went public in May with an initial public offering that raised $671 million.

Follow Matt Egan on Twitter @MattMEgan5