DuPont Is Cashing In on Delrin Business With Sale to Private-Equity Firm

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The deal is valued at $1.8 billion and is expected to close near the end of the year.

The materials manufacturer DuPont confirmed that it has agreed to sell an 80.1% ownership interest in Delrin, an acetal homopolymer business, to the private-equity firm TJC LP.

The deal is valued at $1.8 billion and is expected to close around year-end 2023, according to a press release. When the deal is closed, DuPont will receive pretax cash proceeds of approximately $1.25 billion, subject to customary transaction adjustments, plus a note receivable of $350 million. It will own a 19.9% noncontrolling equity stake in the Delrin business.

“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,” said CEO Ed Breen.

Shares of DuPont were 1.4% higher in premarket trading. Coming into Monday’s session, the stock had climbed 9.9% this year.

 

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