Carlyle Group Nears $5B Deal With DuPont

by Christopher Freeburn | August 6, 2012 3:12 pm

The Carlyle Group (NASDAQ:CG[1]) is in talks with Dupont (NYSE:DD[2])┬áto acquire the chemical maker’s auto paint unit[3] for close to $5 billion, according to the New York Post.

Other private equity firms are circling the business including Blackstone (NYSE:BX[4]), Kohlberg Kravis Roberts (NYSE:KKR[5]) 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[6]) for $3.5 billion in July.

Shares of DuPont rose more than 1% in Monday afternoon trading, while Carlyle shares edged up fractionally.

Endnotes:
  1. CG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CG
  2. DD: http://studio-5.financialcontent.com/investplace/quote?Symbol=DD
  3. acquire the chemical maker’s auto paint unit: http://www.nypost.com/p/news/business/carlyle_is_close_to_deal_zwChEmk1la7ckjN2DVQHbJ
  4. BX: http://studio-5.financialcontent.com/investplace/quote?Symbol=BX
  5. KKR: http://studio-5.financialcontent.com/investplace/quote?Symbol=KKR
  6. UTX: http://studio-5.financialcontent.com/investplace/quote?Symbol=UTX

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