DuPont Considers Sale of Performance Coatings Division

DuPont, a leading chemical company, is exploring the possibility of selling its performance coatings division, which includes auto paints, according to reports. The division, which generates $4 billion in revenue, has been put on the market by Credit Suisse and Greenhill & Co. The sale is seen as a strategic move by DuPont to focus on its core businesses. The performance coatings division accounts for 12% of DuPont's total revenue of $31.5 billion.

Key Takeaways:

• DuPont is reportedly considering the sale of its performance coatings division, which includes auto paints, for up to $4 billion.
• The division has been hired by Credit Suisse to find potential buyers and by Greenhill & Co. to separately handle the sale of a powder-coatings unit.
• The performance coatings business accounted for 12% of DuPont's $31.5 billion in revenue last year.
• Transportation coatings competitors and potential strategic buyers include PPG Industries, BASF, and Akzo Nobel.
• DuPont sells its coatings to auto producers like Ford and General Motors as well as auto paint refinishers.

Statistics:

• DuPont's performance coatings division generates $4 billion in revenue.
• The division accounts for 12% of DuPont's total revenue of $31.5 billion.
• DuPont's stock price was $42.94 on October 10, 2011.
• The SmarTrend Alert system indicated an uptrend for DuPont's stock on October 10, 2011.
• Credit Suisse and Greenhill & Co. have been hired to handle the sale.

Sources:

• Bloomberg News
• MarketNewsVideo.com
• Comtex SmarTrend Alert system