DuPont recently announced that it has entered into a definitive agreement with Celanese Corp. to divest a majority of its 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. Combined, these businesses generated net sales of approximately $3.5 billion in 2021.
Celanese has reportedly received fully committed financing in connection with the transaction. Closing is expected 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 for Celanese to partner with the team and we are confident that together they will continue to drive industry-defining material science innovation to serve customers and the value chain.”
“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.”
The Auto Adhesives, Multibase, and Tedlar® product lines within the Mobility & Materials segment are not included in the scope of the intended divestitures. DuPont intends to use the net proceeds from the divested Mobility & Materials businesses to fund its acquisition of Rogers Corp. and further M&A opportunities, in addition to continuing share repurchases as part of a balanced financial policy.
“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 said. “This agreement also generates significant value for DuPont shareholders. After consideration of multiple deal structures, including a range of potential buyers, we are confident that our announced transaction with Celanese maximizes value for our shareholders and positions the business and our employees for long-term success.”
For more information, visit www.dupont.com. Celanese is online at www.celanese.com.
