Warren Buffett Adds To Automotive Bets With $560 Million Axalta Investment

April 7, 2015 1:25 PM

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The investment comes as Axalta’s private equity owner The Carlyle Group begins exiting an extremely successful buyout investment. Carlyle bought Axalta from DuPont DuPont for $4.9 billion in 2013 as the chemical and agriculture giant’s CEO Ellen Kullman sought to pare down its operations and focus on high margin businesses. The deal proved a quick success for Carlyle, which took Axalta public this November, selling 50 million shares at $19.50 apiece, more than tripling its investment.

Since going public, Axalta shares have performed strongly, rising 50% in under six months. However, that post-IPO surge isn’t keeping Buffett on the sidelines. Berkshire will be buying 20 million Axalta shares directly from Carlyle for $28 apiece, a slight discount to the company’s Monday closing pr...

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