Axalta Coating Systems, a global manufacturer of coatings for the auto and transportation industry, filed on Wednesday with the SEC to raise up to $100 million in an initial public offering, though the deal size is likely a placeholder. We estimate the company could raise $1 billion.
Carlyle bought Axalta from DuPont in February 2013 for $4.9 billion. The company's end markets for its high-performance liquid and powder coatings are divided into refinishing (body shops; 42% of sales), industrial (insulation, oil and gas pipes; 17%), light vehicle (automotive; 32%) and commercial vehicle (Bus, rail; 9%). Axalta claims to have the #1 global market position in the refinishing market. Carlyle plans to sell shares on the IPO, and the company's proceeds will be used to pay down debt.
2014 has seen two auto-related IPOs - TrueCar (TRUE, up 89% from the IPO price) and Mobileye (MBLY, up 48%). Another LBO'd auto components retailer, ATD (ATD.RC), filed in June for an IPO that could raise $500 million.
The Philadelphia, PA-based company was founded in 1866 and booked $4.3 billion in sales for the 12 months ended June 30, 2014. Axalta has not yet selected an exchange or a ticker. Citi, Goldman Sachs, Deutsche Bank, J.P. Morgan, BofA Merrill Lynch, Barclays, Credit Suisse and Morgan Stanley are the joint bookrunners on the deal. No pricing terms were disclosed.
