If completed, the purchase will create the third-largest maker of coatings and a leading supplier to the automotive industry. Terms of the transaction weren't disclosed.DuPont (DD), the nation's largest chemicals company, said it's buying the business to forge a stronger position for one of its major businesses. The coatings units have combined sales of $3.7 billion, DuPont 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," said DuPont CEO Charles Holliday, in a statement.
DuPont is the leading supplier of automotive coatings in North America, while Herberts is the leader in Europe. Combining the two companies will allow faster development of new technologies and and markets in developing regions, DuPont said.
Shares of Wilmington, Delaware-based DuPont rose 1/2 to 57 3/8. Shares of Germany's Hoechst AG, one of the world's largest chemical and pharmaceutical makers, (HOE) rose 2 3/8 to 41.
Written By Stephanie O'Brien