The Carlyle Group is known for buying companies on the cheap, growing business via government contracts and then doubling their money usually in less than 2 years. CSX Lines which became Horizon Lines is such an example. However, Carlyle's latest acquisition of PQ Corporation provided the seller with a near similar return.
Two private equity firms purchased PQ Corporation in 2005 for $879 million. They announced the deal to sell it for $1.5 billion just over 2 years later. That's a $621 million or 70% profit.
So what does Carlyle see in the company? It's glass engineered products are used in road building and updating. They make reflectors, so keep an eye out for any huge federal purchases in this area.
Another product provides shielding from electromagnetic interference. With electronic pulse weapons not far away, protecting critical electronics will be important. Carlyle has long had the ability to read the federal tea leaves and buy accordingly. Why doubt them now on this transaction?
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