DuPont divesting engineering polymers, inks €4.5bn deal to buy Rogers
3 Nov 2021
Polymer lines up for sale include Hytrel thermoplastic polyester elastomers, Vamac ethylene acrylic elastomers and Zytel polyamides
Wilmington, Delaware – DuPont has announced a series of strategic actions, including plans to divest a substantial portion of its mobility & materials segment and the $5.2-billion (€4.5 billion) acquisition of Rogers Corp.
The restructuring moves are part of a strategy to become a “premier multi-industrial company" focused on high-growth, high-margin businesses with complementary technologies, said a 3 Nov DuPont statement.
Businesses within the mobility & materials segment that are in-line for divestment are predominantly those in the engineering polymers and performance resins sectors as well as the company’s stake in the DuPont Teijin Films joint venture.
These include brands such as Zytel polyamide 66, Delrin polyacetal resins, Hytrel thermoplastic polyester elastomers, Crastin polybutylene terephthalate, Vamac ethylene acrylic elastomers and Tedlar polyvinyl fluoride.
Combined, these businesses represent approximately $4.2 billion in revenue and about $1.0 billion of operating earnings (EBITDA) based on full-year 2021 estimates, DuPont said.
Furthermore, DuPont said it had entered into a definitive agreement to acquire Chandler, Arizona-based Rogers, a specialist in engineered materials and components.
DuPont said Rogers’ value-added products, such as high-frequency circuit materials, ceramic substrates for power semiconductor devices, and high-performance foams, will offer it competitive edge.
Rogers has a workforce of more than 3,500 employees with a global network of 14 manufacturing sites in North America, Europe, and Asia and 2021 expected revenues of approximately $950 million.
The transaction is expected to close in the second quarter of 2022, subject to customary closing conditions.
“With today’s announcements, we are sharpening our focus on high-growth, high-value opportunities in sectors with steady long-term secular growth trends," said Ed Breen, executive chairman and CEO, DuPont.
Moving forward, he said, DuPont’s portfolio will be centred on ‘pillars of electronics, water, protection, industrial technologies and next generation automotive.’