Berkshire Hathaway Invests $560 Million For 8.7% Stake In Axalta by Dr. David Kass
Berkshire Hathaway is investing $560 million to acquire 20 million shares of Axalta Coating Systems Ltd (AXTA) at $28.00 per share for an 8.7% stake from controlling shareholder Carlyle Group which currently owns 74% of the company.
Berkshire owns Lubrizol, the maker of lubricants and Benjamin Moore, which sells paint for use in buildings. Axalta’s paints and coatings are used for vehicles and pipelines, with automobile repair shops being its primary customers.
Carlyle bought AXTA from DuPont in 2013 in a $4.9 billion deal and took the company public in November, 2014 in a $1 billion offering that was priced at $19.50 a share.
For much of the past decade, Crispin Odey has been waiting for inflation to rear its ugly head. The fund manager has been positioned to take advantage of rising prices in his flagship hedge fund, the Odey European Fund, and has been trying to warn his investors about the risks of inflation through his annual Read More