Carlyle to take on $250 million in unfunded liabilities in DuPont Coatings deal
By Kevin Olsen | August 30, 2012 3:57 pm
Carlyle Group will assume $250 million in unfunded liabilities from the pension plan of DuPont Performance Coatings, Wilmington, Del., as part of Carlyle's $5.15 billion acquisition announced Thursday, according to a Carlyle news release.
Carlyle will purchase the unit from E.I. du Pont de Nemours & Co. with funding from private equity funds $13.7 billion Carlyle Partners V and €5.3 billion ($6.6 billion) Carlyle Europe Partners III.
The pension asset transfer applies only to DuPont Performance Coatings employees in the non-U.S. DB plans; U.S. employees will remain in DuPont's pension plan, said Mac Martin, DuPont manager of investor relations, in a telephone interview.
DuPont had $17.8 billion in global defined benefit assets and $27.1 billion in liabilities as of Dec. 31, according to its most recent 10-K filing. It has an asset allocation of 38.2% domestic equity, 24.6% fixed income, 16.5% private market securities, 11.8% cash and other, 6.7% real estate and 2.2% hedge funds.
Carlyle spokesman Randall Whitestone declined to comment further.