DuPont sells aramids business to materials firm Arclin for $1.8B

DuPont Inc. said it has reached a definitive agreement to sell its aramids business to Arclin Inc. (Alpharetta, Georgia), a portfolio company of an affiliate of private equity firm TJC LP (New York), for approximately $1.8 billion.

DuPont’s #aramids business includes the Kevlar and Nomex synthetic fiber brands. It has a workforce of 1,900 and five manufacturing sites. The aramids business generated net sales of $1.3 billion in 2024.

Arclin has received fully committed financing in connection with the transaction, which is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approval, DuPont said in a statement Aug. 29.


DuPont said it will receive pretax cash proceeds of approximately $1.2 billion at close, subject to customary transaction adjustments, a note receivable of $300 million, and a noncontrolling common equity interest in the future Arclin company currently valued at $325 million, which is expected to represent an approximate 17.5% stake at the time of close.

”The aramids transaction further enhances the strategic focus of our portfolio, while also increasing the growth and margin profile,” said Lori Koch, CEO of DuPont.


The aramids divestiture will not impact DuPont’s intended separation of its electronics business, to be called Qnity Electronics Inc., which remains on track for a Nov. 1, 2025, spinoff, DuPont said.


The aramids transaction offers significant growth potential to #Arclin, the company said. "The addition of #Kevlar and #Nomex to the Arclin portfolio presents a unique opportunity to transform our business with increased scale, broader global reach, and market-leading application development capabilities," said Bradley Bolduc, Arclin president and CEO.

Kevlar and Nomex are used in bulletproof vests and firefighting equipment, respectively, for their high-strength and thermal-resistance properties.

Arclin is a materials science company, supplying polymer technologies and manufacturing engineered products and specialized materials for the construction, agriculture, transportation infrastructure, weather and fire protection, pharmaceutical, nutrition, electronics, design and other industries.


Reports in July said that private equity firms #AdventInternational LP and Platinum Equity LLC were preparing bids for #DuPont’s aramids business.


source : Chemweek

Comments

Popular posts from this blog

ENVALIOR ANNOUNCES NEW PPS COMPOUNDING FACILITY IN EUROPE

Today's KNOWLEDGE Share : What Is Going Wrong in UK Plastics Recycling?

Today's KNOWLEDGE Share : Robotic 3D printing can compete with traditional boatbuilding