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DuPont Sells a Majority Stake in its Delrin Acetal Business, Continuing its Long History of Divestitures
August 25, 2023
DuPont has announced the sale of an 80.1% stake in its Delrin acetal homopolymer unit to private equity firm TJC. The deal, which values the Delrin business at $1.8 billion, is expected to close by year-end, pending regulatory approvals. TJC has already secured the necessary financing for the acquisition.
DuPont is set to receive $1.25 billion in pre-tax proceeds and a $350 million note receivable from the transaction. The chemical giant will maintain a stake in the Delrin unit, which specializes in the production of acetal homopolymers. These polymers are crucial in various high-load mechanical applications, including conveyor belts, safety restraints, gears, and medical devices.
Ed Breen, CEO of DuPont, stated, "This deal is designed to optimize shareholder value. It not only provides substantial cash proceeds but also allows DuPont to share in the future growth of the Delrin business through our retained equity."
The proceeds from this sale will be strategically reinvested to align with DuPont's focus on high-margin electronic materials, much like the sale of DuPont's Mobility & Materials sector to industry peer Celanese back in 2021 for $11 billion. Until the deal is finalized, DuPont will record Delrin's operational results as discontinued operations on its balance sheet.
These is a selective list of divestitures from DuPont since in 1999, when the company shifted its focus more towards biosciences.
2017 - Merger with Dow Chemical, Dupont spinoff completed in 2019
2013 - Sale of Performance Coating Business to the Carlye Group
2005 - Sale of Textile Fiber Business to Koch Industries
2003 - Sale of Invista to Koch Industries
2004 - Sale of Textile Business
2002
2001 - Sale of Pharmaceutical Business to Bristol Myers Squibb
1999
This will likely not be the end of the DuPont Divestures, as this dynamic and innovative leader will undoubtedly continue to evolve.
--The Plastics Exchange
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