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Divestment of Polymer and Resins Lines Part of DuPont Strategic Actions
November 02, 2021

DuPont said today it has entered into a definitive agreement to acquire global engineered materials and components company Rogers Corporation for $5.2 billion. The transaction is expected to close in the second quarter of 2022, subject to customary closing conditions, including approval by Rogers shareholders and receipt of applicable regulatory approvals.

The divestment is one of a series of actions DuPont announced it was taking to advance its strategy as a premier multi-industrial company focused on market-leading high-growth, high-margin businesses with complementary technology and financial characteristics.

As part of its actions, DuPont also said it intends to divest a substantial portion of its Mobility & Materials segment, which includes the Engineering Polymers and Performance Resins lines of business as well as the company's stake in the DuPont Teijin Films joint venture.

Polymer and Resins lines within the intended divestment would include DuPont's Zytel, Delrin, Hytrel, Crastin, Vamac and TEDLAR brands, which the company said combined represent approximately $4.2 billion in revenue and about $1.0 billion of operating EBITDA based on full year 2021 estimates.

"Finding an ownership model that appropriately values the leadership positions and deep customer value proposition of the in-scope Mobility & Materials portfolio will position the business for continued success, leveraging its unmatched combination of products, technologies, and operating expertise for the benefits of its employees and customers," said DuPont Executive Chairman and CEO Ed Breen. "Through unprecedented challenges in the past 18 months, these teams have proven that their unwavering commitment to deliver for their customers, employees and partners has generated solid results and I am confident they are well equipped to expand their leadership positions under new ownership."

DuPont said it expects to realize approximately $115 million in pre-tax run-rate cost synergies by the end of 2023. The cost synergies associated with both the Laird Performance Materials acquisition and the intended Rogers acquisition represent approximately 6% of the combined revenue, including DuPont Interconnect Solutions.

DuPont has also committed financing in place for the acquisition of Rogers and plans to use some of the proceeds from the planned divestiture of a portion of Mobility & Materials segment to repay all acquisition financing related to Rogers and pursue additional growth opportunities in its remaining key pillars as part of its balanced capital deployment plan.

By Brian Balboa for The Plastics Exchange.


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