Sponsored By

DuPont agrees to sell 80.1% ownership interest to private equity firm TJC LP.

Posted by Staff

August 21, 2023

2 Min Read
plastic gears
Pavel Vozmischev/iStock via Getty Images

DuPont has agreed to sell an 80.1% ownership interest in the Delrin acetal homopolymer (H-POM) business to private equity company TJC LP. The transaction is valued at $1.8 billion and is expected to close around the end of this year, subject to customary closing conditions and regulatory approvals.

When the deal closes, DuPont will receive pre-tax cash proceeds of approximately $1.25 billion, subject to customary transaction adjustments; a note receivable of $350 million; and will own a 19.9% non-controlling common equity interest in the Delrin business, said the news release.

"This transaction is structured to maximize value for our shareholders,” said CEO Ed Breen. He noted that the deal provided “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." 

"Delrin is widely recognized as the material of choice for safety critical and high cost-of-failure applications across diverse end markets," said TJC Partner Ian Arons. "For over 60 years the Delrin business has leveraged its differentiated technologies and global manufacturing presence to provide its customers high-quality, innovative solutions. We are thrilled to have DuPont as a partner, and we look forward to working closely with the entire Delrin team to drive future growth in the business," said Arons.

DuPont notes on its website that Delrin is typically specified for high-load mechanical applications and precision parts, where strength, stiffness, stability, and reliability are important. It is also used to improve gear performance in high-wear, high-friction applications in automotive equipment and other products.

In 2022, DuPont sold its engineering plastics business to Celanese for $11 billion, saying at the time that the proceeds would fund the acquisition of Rogers Corp. The Rogers deal was subsequently scrapped because DuPont was unable to receive clearance from Chinese regulators in a timely manner.

Sign up for the PlasticsToday NewsFeed newsletter.

You May Also Like