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Carlyle's Axalta files for IPO

3:05 PM MDT | August 21, 2014 | Vincent Valk

Coatings maker Axalta has filed with the US Securities and Exchange Commission (SEC; Washington) for an initial public offering (IPO) of an undetermined value, according to regulatory filings. The filing, which consists of a preliminary prospectus, did not specify the timing of a potential IPO, or the price or number of shares in the offering. Axalta says it will use and any proceeds from an IPO to pay down debt, and the company itself will not receive any proceeds from a deal.

Axalta is owned by private equity firm the Carlyle Group (Washington), which has a 99.5% stake in the company. Carlyle purchased Axalta, the former automotive coatings business of DuPont, for $4.9 billion in 2012. Axalta’s 20 shareholders – aside form Carlyle, mostly company management – held about 135.5 million shares in the company as of 30 June.

Axalta has recorded sales of $4.34 billion, adjusted Ebitda of $799 million, and net income of $3 million over the past year, according to the filing. About 83% of the company’s sales are into the automotive coatings market, with 42% into the automotive refinish market, 32% into the light-vehicle original equipment manufacturer (OEM) market, and 9% into the commercial vehicle market. The remainder of Axalta’s sales are into the industrial coatings market. Axalta has the largest market share in the auto refinish market, and the second-largest share in the light-vehicle OEM market, after PPG, the filing says. The light-vehicle market is expected to grow in excess of GDP between now and 2018, Axalta says. Overall, 90% of the company’s revenues are in markets where Axalta holds the number-one or number-two position by revenues, the filing says.

The company has 35 manufacturing sites and 12,650 employees, the filing says. Its largest region by sales is Europe, the Middle East, and Africa (EMEA), with a 39% share, North America is second-largest, with a 30% share. The rest is about evenly distributed between Latin America and Asia, according to the filing.

Citigroup, Goldman Sachs, Deutsche Bank, and J.P. Morgan were listed as lead underwriters. 

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