DuPont entered into a definitive agreement with Celanese Corp. to divest a majority of the Mobility & Materials segment for $11 billion in cash.
DuPont, based near Wilmington, had earlier announced plans to sell off the businesses as it focuses on electronics and other markets.
The businesses account for approximately $3.5 billion and operating EBITDA (earnings before taxes, interest and other expenses of about $800 million.
The transaction is expected to close around the end of 2022, subject to customary closing conditions and regulatory approvals.
“The transaction with Celanese that we are announcing today will create a market-leading portfolio serving the automotive, consumer and industrial markets with unmatched scale, manufacturing capability and technical expertise,” said Ed Breen, CEO. . “We are proud of the strength of these industry-leading businesses, which we believe will be even stronger when combined with the highly complementary portfolio of Celanese. We are excited for Celanese to partner with the team and we are confident that together they will continue to drive industry-defining material science innovation to serve customers and the value chain.”
Breen continued, “Today’s announcement represents a significant milestone in DuPont’s transformation as a premier multi-industrial company building upon our recent acquisition of Laird Performance Materials and our intended acquisition of Rogers Corporation to further define DuPont as a market leader in the areas of electronics, water, industrial technologies, protection and next-generation automotive,” Breen continued. “This agreement also generates significant value for DuPont shareholders. After consideration of multiple deal structures, including a range of potential buyers, we are confident that our announced transaction with Celanese maximizes value for our shareholders and positions the business and our employees for long-term success.”
DuPont is separately advancing the process to divest the Delrin business which was included in the scope of the strategic review process the Company announced on November 2, 2021. The Delrin business, which uses plastics as a substitute for metals, generated net sales of about $550 million. The company is targeting a closing date for the sale of Delrin in the first quarter 2023.(2)
The Auto Adhesives, Multibase and Tedlar product lines within the Mobility & Materials segment are not included in the intended divestitures.
DuPont intends on using the net proceeds from the divested M&M businesses to fund the previously announced acquisition of Rogers Corporation and further M&A opportunities in addition to continuing share repurchases as part of a balanced financial policy.
