DuPont to sell majority stake in POM business in $1.8bn deal

Tom Brown

21-Aug-2023

LONDON (ICIS)–DuPont has agreed to sell an 80.1% stake in its Delrin acetal homopolymer business to private equity firm TJC in a deal valuing the former subsidiary at $1.8bn, the US-headquartered firm said on Monday.

With deal close expected by the end of the year subject to regulatory approvals and TJC having secured financing for the purchase, DuPont is to book $1.25bn in pre-tax proceeds and a $350m note receivable. The company will retain a 19.9% stake in the business.

The sold unit produces acetal homopolymers, used in high-load mechanical applications such as conveyer belt, safety restraints, gears and medical devices.

Proceeds from the sale will be used by DuPont to finance its strategic priorities, according to CEO Ed Breen.

“This transaction is structured to maximise value for our shareholders, providing significant cash proceeds at close to be deployed in line with our strategic priorities while providing an opportunity for DuPont to participate in future upside potential upon exit of our retained equity interest in the Delrin business,” he said.

DuPont will continue to book Delrin operational results as discontinued operations on its balance sheet through to the close of the deal.

Thumbnail shows acetal, also known as polyoxymethylene (POM). Image by Shutterstock.

The subscription platform provides access to our full range of breaking news and analysisContact us now to find out more

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?