Chemical titan DuPont de Nemours will sell 80.1% of its Delrin resin business to private equity firm TJC for $1.8 billion, the company announced Monday.
DuPont will retain a 19.9% interest in the Delrin business, meaning DuPont will serve as an investor but will not be involved in the business’ daily operations, a DuPont spokesperson told Manufacturing Dive in an email.
The transaction is expected to close around the end of 2023. Once the transaction is complete, DuPont will receive approximately $1.25 billion.
Delrin is a type of plastic used as materials in parts designed to replace metal, including gears, safety restraints and conveyor belt components. It is known for its durability against fatigue, chemicals and extreme temperatures, as well as its stiff quality.
“This transaction is structured to maximize 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,” DuPont CEO and Executive Chairman Ed Breen said in a statement.
The Delrin divestment announcement marks DuPont’s planned exit of its former mobility and materials segment, Breen said in the press release. In November, the company sold the majority of the business segment to fellow chemical manufacturer Celanese for $11 billion. DuPont first announced it was selling its Delrin acetal homopolymer business in February 2022.
The company announced the sale of a portion of its mobility and materials segment in 2021, which comprised DuPont’s engineering polymers, performance resins and a stake in a polyester films joint venture.
“After considering multiple deal structures, including a range of potential buyers, the company determined that the transaction with TJC was the best at maximizing value for shareholders and positioning the Delrin business, its customers, and employees for long-term success,” a DuPont spokesperson told Manufacturing Dive.
