02.22.22
DuPont announced it has entered into a definitive agreement with Celanese Corporation to divest a majority of the Mobility & Materials segment including the Engineering Polymers business line and select product lines within the Performance Resins and Advanced Solutions business lines for $11 billion in cash, subject to customary transaction adjustments in accordance with the definitive agreement, which represents an enterprise value multiple of ~14x 2021 operating EBITDA.
Combined, these businesses generated net sales of approximately $3.5 billion and operating EBITDA of approximately $0.8 billion in 2021.
Celanese has received fully committed financing in connection with the transaction. 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, executive chairman and CEO of DuPont. “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 to welcome our future colleagues from DuPont who have built a world-class product and technology portfolio which is highly regarded in the industry,” said Lori Ryerkerk, Celanese chairman and CEO. “Our businesses are highly complementary which will accelerate our growth in high-value applications including future mobility, connectivity and medical.”
“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.
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 generated net sales of approximately $0.55 billion and operating EBITDA of approximately $0.18 billion in 2021.
“Delrin acetal homopolymer (H-POM) is an industry leading technology utilized by customers around the world to meet their most demanding needs,” Breen said. “There is substantial interest in this high-quality asset and I am confident that the anticipated sale of Delrin will generate additional value for DuPont shareholders.”
The Auto Adhesives, Multibase and Tedlar product lines within the Mobility & Materials segment are not included in the scope of the intended divestitures. Beginning in the first quarter 2022, DuPont will report the retained M&M businesses in Corporate for current and historical periods. In aggregate, the retained M&M businesses generated net sales of approximately $0.95 billion and operating EBITDA of approximately $0.12 billion in 2021.
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.
Combined, these businesses generated net sales of approximately $3.5 billion and operating EBITDA of approximately $0.8 billion in 2021.
Celanese has received fully committed financing in connection with the transaction. 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, executive chairman and CEO of DuPont. “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 to welcome our future colleagues from DuPont who have built a world-class product and technology portfolio which is highly regarded in the industry,” said Lori Ryerkerk, Celanese chairman and CEO. “Our businesses are highly complementary which will accelerate our growth in high-value applications including future mobility, connectivity and medical.”
“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.
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 generated net sales of approximately $0.55 billion and operating EBITDA of approximately $0.18 billion in 2021.
“Delrin acetal homopolymer (H-POM) is an industry leading technology utilized by customers around the world to meet their most demanding needs,” Breen said. “There is substantial interest in this high-quality asset and I am confident that the anticipated sale of Delrin will generate additional value for DuPont shareholders.”
The Auto Adhesives, Multibase and Tedlar product lines within the Mobility & Materials segment are not included in the scope of the intended divestitures. Beginning in the first quarter 2022, DuPont will report the retained M&M businesses in Corporate for current and historical periods. In aggregate, the retained M&M businesses generated net sales of approximately $0.95 billion and operating EBITDA of approximately $0.12 billion in 2021.
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.