Carlyle Group to buy
DuPont Performance Coatings
Business for $4.9 Billion
Global alternative asset manager The Carlyle
Group and DuPont announced that they have
signed a definitive agreement whereby Carlyle
will purchase DuPont Performance Coatings (DPC) for
$4.9 billion in cash. The transaction is expected to close
in the first quarter 2013,
subject to customary closing
conditions and regulatory
approvals. DPC is
a global supplier of vehicle and industrial
coating systems with 2012 expected sales
of more than $4 billion and more than
11,000 employees. The investment will be
funded with equity from Carlyle Partners
V and Carlyle Europe Partners III.
DuPont remains committed to serving the automotive
industry. Following the closing of this transaction,
DuPont will generate more than $3 billion in
sales of advanced materials to the auto industry.
Beginning with the third quarter 2012, DuPont will
classify and report results of DPC as discontinued
operations on a retroactive basis. DuPont expects
2012 full-year earnings from discontinued operations
to be in the range of $.41 to $.47 per share. Full-year
2012 guidance was last updated on and as of July 24,
2012, and is not being updated today. The company
will begin providing full-year 2012 guidance from
continuing operations when it issues its third quarter
earnings announcement on Oct. 23.
DuPont plans to eliminate general corporate overhead
costs that were previously allocated to DPC but
are not part of the transaction. Additional details will
be provided during DuPont's third quarter earnings
announcement. As part of the transaction, Carlyle
will assume $250 million of DuPont's unfunded
pension liabilities. DuPont will use the net aftertax
proceeds of this sale in a manner consistent
with its cash deployment
principles and
goal to maximize
shareholder value
creation. Carlyle's
industrial and automotive investments include Allison
Transmission, Hertz, and PQ Corp., as well as recent
commitments to invest in Hamilton Sundstrand
Industrial, Sunoco's Philadelphia refinery and regional
rail freight operator Genesee & Wyoming.
Founded in 1922 and headquartered in
Wilmington, Del., DuPont Performance Coatings is the
leading global manufacturer, marketer, and distributor
of advanced coating systems primarily for the transportation
industry. The company is made up of four
segments: refinish, OEM, industrial liquid, and powder.
The company operates manufacturing sites on six
continents, serving customers in 120 countries directly
and through 4,000 distributors.
Cytec Initiates Sale Process for Its Coating Resins Business
cytec Industries has initiated a formal sale
process for its Coating Resins business.
Cytec’s target is to complete a transaction by
the end of the year. The company has been pursu
ing a strategy to increase focus on its Engineered
Materials, In Process Separation, and Additive
Technology segments. As part of this strategy, Cytec C
retained J.P. Morgan Securities LLC to assist in an
analysis of alternatives available to effect a separation
of its entire Coating Resins business. As part of
this analysis, Cytec recently announced the sale of its
Pressure Sensitive Adhesive product line. Consistent
with its growth strategy, the company announced earlier
this year the acquisitions of Umeco plc, an international
provider of advanced composite materials,
and Star Orechem International Private Limited, an
India-based manufacturer of extraction technology
that supports the growth of the In Process Separation
segment. The Coating Resins segment includes the
following product lines: Powder Coating Resins,
Radiation-Cured Resins (Radcure Resins), Liquid
Coating Resins and Additives (including Waterborne
Resins, Solventborne Resins, Urethane Resins, and
Additives), and Amino Crosslinkers.
Prismatic Powders
New Offerings
Prismatic Powders has introduced one-pound minimum
powder orders. Customers can now order
exactly what they need, from one pound and up,
anytime at www.PrismaticPowders.com. In addition to
smaller minimums,
the company has
announced their
commitment to
same-day shipping
of orders placed on
in-stock items
before 1 pm EST.
RAL colors are also
available online and can be ordered in any quantity.
The company also launched its latest product videos,
featuring the Two-Coat Kit System and multiple lines
of exclusive powder coatings at
www.YouTube.com/PrismaticPowders. Three videos
highlight the advantages of the two-coat system,
specifically with the use of the transparent topcoats
Shocker Yellow, Peeka Blue, and Lollypop Red over 14
exclusive base coats, creating a multitude of custom
colors that are not possible in a single-coat applica-
tion. Each topcoat video is just one of 11 topcoats
featured in the Prismatic Powders Two-Coat Kit
System, and when combined with the 14 base
coats, 179 colors can be achieved. Prismatic
Powders also launched product videos featuring its
single-coat Splatter, Ironstone, and Sandstone line
of powders.
SME Releases
Manufacturing Ed Strategy
The Society of Manufacturing Engineers (SME)
announced a national action plan, “Workforce
Imperative: A Manufacturing Education
Strategy,” at the 2012 International Manufacturing
Technology Show (IMTS) at Chicago's McCormick
Place. The plan calls for manufacturers, educators,
professional organizations, and government to
coordinate and standardize efforts aimed at reversing
the U.S. skills gap crisis and preparing a
skilled workforce for the high-tech manufacturing
jobs of today and tomorrow. The white paper
addresses a manufacturing education void where
600,000 jobs are currently unfilled due to a shortage
of properly trained workers. By 2015, that
number is projected to reach 3 million openings.
SME’s white paper is the culmination of two
years of research by SME’s Task Force on the Role
of SME in Higher Education and members of
SME’s Manufacturing Education & Research
Community, who closely examined the state of
manufacturing education. The research was conducted
through a series of events held to discuss
manufacturing education, which engaged hundreds
of stakeholders from industry, government and
education. For more information on SME’s recommendations
or to download a copy of the strategy,
visit www.sme.org/WorkforceImperative or send an
email to WorkforceImperative@sme.org.
McClatchey Retires as SAF president
Atlanta-based Southern
Aluminum Finishing (SAF)
announced the retirement
of John McClatchey, Ph.D., from
the position of president, effective
Sept. 1. McClatchey, 67, has been
president since 1988. He will continue
to serve on the Board of
Directors and plans to work as
chief financial officer of SAF for
at least another two years.
James, 62, and Penn McClatchey,
50, will share the CEO job,
assuming the titles co-CEO.
James will take responsibility for
Sales, IT, and Finance. Penn will
take responsibility for
Operations, Engineering, and
Marketing. SAF is a nationwide
aluminum extrusions and sheet
distributor, aluminum fabricator,
and aluminum finisher specializing
in Kynar painting and architectural
anodizing. SAF also distributes
column covers, architectural
panels, and commercial
roofing trim to architectural specifiers,
glazing contractors, and
other industries. Customers can
order batch aluminum anodizing,
painting, coil anodizing, powder
coating and custom fabricating.
PCI Certification
T
he PCI 3000 Certification Program, which is
available to all custom coaters applying powder
coatings, acknowledges coaters who can meet a
standard of product quality that fits their market
and meets or exceeds all of their market needs and
advertised standards. In addition, PCI offers the
PCI 4000 Certification Program, which is designed
and offered to all original equipment manufacturers
(OEMs) applying powder coatings. This is the certification
that DSI has earned.
The audit process exposes the powder coater to a
thorough examination of their equipment and
process used for application. It also examines their
business operation from raw materials to finished
products. This includes the safety culture within
the company, inventory control, quality control,
process control, and customer satisfaction. The
entire operation is examined to make sure that the
powder coater can deliver their expressed level of
quality on a regular basis. In addition to the initial
audit, the coater is required to perform routine
internal audits and they are required to schedule
an annual audit by PCI to reaffirm their continued
compliance with the goals of the program.
During the auditing process PCI closely examine
each of 12 operating elements. These elements include:
1. Pretreatment of the substrate
2. Ovens used for drying and curing
3. Application of the powder coating
4. Incoming material quality control
5. Training practices and competencies
6. Maintenance of the system
7. Customer satisfaction
8. Safety record and practices within the operation
9. Process control
10. Warranties, guarantees and performance expectations
11. Final quality control practices
12. Loading, unloading and packaging
Within each element, the powder coater must meet a
minimum required score in order to receive the
approval of PCI and become certified.