Correction: In the first sentence of Coatings World’s breaking news item “DuPont exploring sale of its performance coatings unit” (Nov. 2), we mistakenly reported, “DuPont said it is considering the sale of its automotive paint division…” The source of this information did not come from DuPont but from a previously published story by Bloomberg. DuPont has not made an official statement. An amended version of the story follows.
DuPont is rumored to be considering the sale of its automotive paint division, one of the largest in the world.
As first reported by Bloomberg, the news agency said DuPont hired Credit Suisse Group AG to seek buyers for DuPont's performance coatings division, but has yet to begin an auction process.
DuPont's performance coatings unit recorded sales of $3.8 billion in 2010 and includes a smaller powder coatings unit that would be sold separately. Together the performance coatings unit earned $255 million last year.
Bloomberg said Greenhill & Co. is handling the sale of the powder business, which makes coatings for tractors and playground equipment.
The performance coatings operations accounted for approximately 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.
**This article contains information originally reported by Bloomberg.