DuPont has entered into a definitive agreement to acquire Spectrum Plastics Group from AEA Investors, a private equity firm.
The purchase price will be paid from existing cash balances. The transaction is expected to close by the end of the third quarter of 2023, subject to regulatory approvals and other closing conditions.
The price tag is $1.75 billion for the company based in northern New Jersey. Annual sales are more than $440 million.
Spectrum is a manufacturer of specialty medical devices and components with a strategic focus on key fast-growing areas such as structural heart, electrophysiology, surgical robotics, and cardiovascular.
Spectrum has more than 2,200 employees and has delivered consistently high single-digit growth rates for many years. Spectrum is aligned with DuPont’s objective of delivering innovative specialized materials into markets with long-term growth trends, a release stated.
“We have been focused on Spectrum for a long time and our team is extremely excited for this opportunity,” said Ed Breen, CEO of DuPont. “Spectrum is a compelling strategic complement to our existing healthcare portfolio, which already includes businesses with best-in-class innovation, deep customer relationships, and with strong growth and profitability. With this combination, we’ll be able to offer customers additional innovation and manufacturing capabilities with a broader and more integrated solution set.”
“Spectrum is a best-in-class company for the development and advanced manufacturing of specialty medical devices and components,” said Rahul Goyal, a partner at AEA Investors. “Through investments in the commercial and engineering organizations and expansion of its manufacturing operations, Spectrum has enhanced its capabilities and offerings in medical end markets and achieved significant growth and increased profitability. We are proud to have supported Spectrum’s transformation for the past five years and believe DuPont is an excellent partner for Spectrum. The combination is ideally positioned to continue providing excellent customer service and highly-engineered solutions for critical healthcare applications.”
The acquisition comes after a failed attempt to acquire electronics supplier Rogers Corp. in a $5 billion deal due to reluctance by the Chinese government to approve the merger in a timely manner. Rogers has manufacturing sites in northern Delaware.
DuPont has been shrinking its operations through spin-offs and asset sales while working to expand in faster-growing markets like healthcare and electronics.
