NEW YORK Aug 13 Buyout firm Carlyle Group LP
has hired banks for an initial public offering of Axalta
Coating Systems LLC, according to people familiar with the
matter, just a year and a half after it acquired the company
from Dupont for $4.9 billion.
Citigroup Inc and Goldman Sachs Group Inc have been
given leading roles in the potential IPO of the performance
coatings company, the people said on Wednesday. The IPO could
raise as much as $1 billion, one of the people added.
The sources asked not to be identified because the
discussions are private. Bloomberg News reported on Axalta's IPO
preparations earlier on Wednesday. Carlyle, Citigroup and
Goldman Sachs declined to comment, while an Axalta spokeswoman
did not immediately respond to a request for comment.
Based in Philadelphia, Axalta makes liquid and powder
coatings for the automotive and general transportation
industries. It operates 35 manufacturing centers and does
business in more than 130 countries, according to its website.
Private equity firms typically hold on to companies between
three and five years before they sell them. Carlyle's plans to
take Axalta public in such a short time frame reflect the
strength of the equity markets as well the private equity firm's
confidence in Axalta's prospects as a public company.
These plans, however, may not necessarily lead to a quick
exit for Carlyle. For example, it took the Washington,
D.C.-based firm more than six years for it to sell its shares in
Hertz Global Holdings Inc.
Carlyle took Hertz public in November 2006, just seven
months after it acquired the company together with Clayton
Dubilier & Rice LLC and Merrill Lynch Private Equity in a $15
Other private equity firms have also rushed to take some of
their biggest portfolio companies public. Apollo Global
Management LLC floated oil and gas producer EP Energy
Corp in the stock market in January, just eight months
after acquiring it from Kinder Morgan Inc for $7.15
(Reporting by Greg Roumeliotis in New York; editing by Gunna