DuPont

History

2024: Plan to split into three companies

In May 2024, DuPont de Nemours Inc. said it would split into three companies, joining a list of industrial conglomerates looking to boost returns by splitting into smaller, more focused businesses.

2022: Sale of part of the business for $11 billion

On February 18, 2022, DuPont announced that it had entered into a final agreement with Celanese to sell most of its DuPont Mobility & Materials division for $11 billion. The manufacturer of industrial materials continues to adjust its portfolio to focus on high-yield operations, the press release said.

The deal, DuPont's largest since its separation from DowDuPont, continues Chief Executive Officer Ed Breen's strategy to focus efforts on the company's electronics and water solutions business.

DuPont sold part of the business for $11 billion

As part of the agreement, Celanese buys:

• A family of nylon products including Zytel, specialized nylon and high temperature nylon (Engineering Polymers);
• Highly efficient Crastin PBT and Rynite PET;
• polyesters (Engineering Polymers);
• Special monofilaments based on nylon (Engineering Polymers);
• Hytrel thermoplastic elastomer (Performance Resins);
• Tamac elastomers (Performance Resins);
• Microcircuit Materials specialized thick film and ceramic tapes (Advanced Solutions);
• DuPont Teijin Films JV ( Advanced Solutions).

Remaining product lines such as Auto Adhesives, Multibase and Tedlar in the Mobility & Materials segment ("M&M's surviving divisions") are not included in the deal perimeter.

The transaction is subject to normal adjustments in accordance with the final agreement, which is a multiplier of the enterprise value ~ 14x 2021 operating EBITDA. Together, the acquired enterprises provided net sales of about $3.5 billion and operating EBITDA of about $0.8 billion in 2021. The cash tax rate on the sale of Celanese is expected to be mid to high single digits.

The deal is expected to close around the end of 2022, subject to normal closing conditions and regulatory approval.

DuPont says it intends to use proceeds from the sale of the Mobility & Materials business to fund the previously announced acquisition of Rogers and further M&A opportunities in addition to continued share buybacks as part of a balanced financial policy.

Celanese said it expects to have a synergistic effect of about $450m during the first four years after the deal closes.^[1]

Notes