Warren Buffett just bought some industrial paint
Warren Buffett just bought a big stake in an industrial paint and coatings company.
Buffett's Berkshire Hathaway announced on Tuesday that it's buying 20 million shares of Axalta Coating Systems from affiliates of Carlyle Group for $560 million, or $28 per share.
Axalta shares were up more than 5% in early trade on Tuesday.
Axalta went public in October 2014 after Carlyle bought Axalta from DuPont in 2013 for $4.9 billion.
"We are pleased to have Berkshire Hathaway take this share ownership position in Axalta," Axalta CEO Charlie Shaver said in a statement. "Berkshire is the type of quality investor that Axalta has been fortunate to attract since our IPO last year."
Axalta went public last November at $19.50 per share, and has rallied by nearly 9% year-to-date.
In the fourth quarter, Axalta lost $0.01 per share, missing estimates for earnings of $0.23. Axalta's revenues totaled $1.08 billion in the quarter.
Axalta creates coatings for various industrial uses including light and commercial cars, trains, and pipelines. Berkshire also owns Benjamin Moore, which produces house paints.