Carlyle Weighs Split of Sequa With Precoat Metals Sale
(Bloomberg) -- Carlyle Group Inc. is considering a split of industrial conglomerate Sequa Corp. and has hired advisers to look at strategic options for its Precoat Metals unit, according to people familiar with the matter.
The private equity firm is working with advisers to run a sale process for Precoat, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The business, one of the largest metal coil coaters in North America, could fetch as much as $1.5 billion and is likely to interest peers and other buyout firms, the people said.
A final decision hasn’t been made and Carlyle could elect to keep the business, the people said.
Representatives for Carlyle and Sequa didn’t respond to requests seeking comment.
Carlyle first invested in Sequa in 2007, taking the company private in a deal valued at $2.7 billion. The Florida-based company, which also has an aerospace parts supply business, Chromalloy, had struggled for a period and then rebounded more recently.
Carlyle restructured Sequa’s $1.7 billion debt load in 2017 through a combination of new debt and equity. Chromalloy, which is the larger of Sequa’s two units, isn’t currently being considered for a sale, the people said.
Precoat makes protective and decorative coatings for metals with applications ranging from abattoirs and cattle sheds to home appliances and food and beverage cans. The company has operations in 13 states, including Maryland and Texas, according to its website.
©2021 Bloomberg L.P.