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DuPont buys Hoechst unit
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October 29, 1998: 9:15 a.m. ET
U.S. firm pays $1.9B for Herberts to form leading auto coatings maker
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NEW YORK (CNNfn) - DuPont Co. agreed Thursday to acquire the Herberts coatings unit of Hoechst AG for $1.89 billion
The deal will create the world's third-largest coatings company and the leading automotive coatings supplier, with combined sales of $3.7 billion, the company said.
"This acquisition is consistent with DuPont's intent to establish global leadership positions in our core businesses through selective investments that capitalize on attractive cost positions and technology synergies," DuPont President and Chief Executive Officer Charles O. Holliday, Jr. said.
"This action is similar to those we have taken recently to build stronger global positions for our Lycra elastane and titanium dioxide businesses. The Herberts acquisition will enable our automotive coatings business to increase its contribution to shareholder value, Holliday added."
DuPont is the dominant supplier of automotive coatings in North and South America, while Herberts is the leading supplier of automotive coatings in Europe.
Together, DuPont Automotive and Herberts employ about 14,000 people.
DuPont shares (DD) finished down 2-11/16 Wednesday at 56-7/8 on the New York Stock Exchange.
(Click here for a chart of DuPont's stock activity)
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