Carlyle has become the most active U.S. private-equity buyer this year by taking over unwanted businesses
August 30, 2012Source: Bloomberg
Carlyle Group LP (CG), which today agreed to purchase DuPont Co. (DD)’s auto-paint unit for $4.9 billion, has become the most active U.S. private-equity buyer this year in part by employing a 25-year-old strategy that helped fuel its growth: taking over unwanted businesses from large companies.
Carlyle has agreed to buy at least $16 billion of assets in 2012, more than double Blackstone (BX) Group LP and Apollo Global Management LLC (APO), according to data compiled by Bloomberg. Two of its largest deals this year were purchases from big companies, including the July buyout of United Technologies Corp. (UTX)’s Hamilton Sundstrand industrial unit for $3.46 billion.
Carlyle, created in 1987 by William Conway, Daniel D’Aniello and David Rubenstein, has snapped up corporate orphans since it started buying up defense companies in the aftermath of the fall of the Berlin Wall. DuPont, based in Wilmington, Delaware, decided to exit the auto-paints market it has been in since the introduction of the motor car, as part of a shift to other industries such as food and biofuels.
“This is a classic deal, back to basics,” said Paul Schaye, managing partner of Chestnut Hill Partners, a New York- based company that helps private-equity firms evaluate transactions. “This was a non-core business for DuPont, which is taking its own business somewhere else.”
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