The Carlyle Group (NASDAQ:CG) is in talks with Dupont (NYSE:DD) to acquire the chemical maker’s auto paint unit for close to $5 billion, according to the New York Post.
Other private equity firms are circling the business including Blackstone (NYSE:BX), Kohlberg Kravis Roberts (NYSE:KKR) and Apollo Management.
Should the deal succeed, Carlyle will be paying roughly eight times the auto paint business’ annual pre-tax earnings.
Carlyle has announced a $10 billion investment fund for this year, but reportedly has yet to completely spend the $13.7 billion raised for its North American fund in 2007.
It has raised at least $2 billion for this year’s fund.
Carlyle teamed with BC Partners to acquire Hamilton Sundstrand from United Technologies (NYSE:UTX) for $3.5 billion in July.
Shares of DuPont rose more than 1% in Monday afternoon trading, while Carlyle shares edged up fractionally.