Axalta Coating Systems seeks to construct big project at Navy Yard

At the same time Axalta Coating Systems Ltd. is seeking an initial public offering, it has also begun a process to eventually construct what would be a 200,000-square-foot manufacturing facility at the Philadelphia Navy Yard, according to sources familiar with the situation.

The project would cost tens of millions of dollars to build and the Philadelphia-based company is seeking state and city funds to help finance it. How many people Axalta would employ at the facility couldn't be determined nor could the time frame the company is working under. An Axalta spokesman couldn't immediately be reached for comment.

Axalta Coating was formerly DuPont Performance Coatings and is a spin off from DuPont. It is owned by the Carlyle Group, a global asset management firm based in Washington, D.C. It is the fourth-largest supplier of coatings in what is a $127 billion industry.

Last fall, the company relocated its headquarters to Philadelphia from Delaware. It leased 30,000 square feet at Commerce Square in Center City. It leased another 55,000 square feet in Concord, Delaware County.

The company made that move with some assistance from tax payers. It received a little more than $2 million in incentives from the state to relocate to Pennsylvania and bring with it 332 jobs. Of that, 100 jobs are in Center City, the remainder in Concord.

Axalta is incorporated in Bermuda. Its products are used in paint found on vehicles and industrial products.

Its IPO of 45 million common shares is scheduled for tomorrow. The shares are being sold by the Carlyle Group and its initial offering price is between $18 to $21 a share. The shares will trade under the ticker symbol "AXTA."

It could raise as much as $878 million and could have a market capitalization of $4.7 billion if the shares land at the midpoint of the price range. The company said in documents filed with the Securities and Exchange Commission that it will not receive any proceeds from the sale of the shares.

It had sales of $4.3 billion for the 12 months ending June 30 and income came in at $12 million, according to SEC documents filed for the IPO. It has $3.9 billion in debt, which it acknowledged could hinder some of its growth initiatives. The company has manufacturing facilities around the globe and employs a total of 12,650 people.

Source: Philadelphia Business Journal