The Carlyle Group, a private equity giant, will buy a subsidiary of Delaware-based DuPont Co. for $4.9 billion. The subsidiary, DuPont Performance Coatings, makes paint for cars and appliances.
Jake Dollarhide, the CEO of Longbow Asset Management Co., says hungry private equity companies have money on hand. They’re searching for investments and DuPont reaped the rewards.
“They’re looking to add good businesses, either whole companies or subsidiaries of other companies, to further diversify and be ready to maximize their value once the economy and markets turn around,” Dollarhide said.
The sale will be completed next year.
This is Carlyle’s second major purchase with ties to the Philadelphia region. Carlyle inked a deal with Sunoco earlier this summer to jointly operate the energy company’s struggling Philadelphia refinery.
Only 50 DuPont employees involved in the latest sale are based in the region, in a Chester County training facility