DuPont closes $11B sale of M&M units
WILMINGTON – DuPont completed the $11 billion sale of the majority of its Mobility & Materials (M&M) business on Tuesday to Celanese Corp., a publicly-traded global chemical and specialty materials company.
The business segment, which includes products in its engineering polymers and performance resins lines, had been shopped for a few months before a deal was struck in February.
The sale includes the entire Engineering Polymers business line and select product lines within the Performance Resins and Advanced, which combined generated net sales of approximately $3.5 billion and operating EBITDA of about $800 million last year.
“We are excited to welcome the M&M team to Celanese and I want to thank the teams that worked diligently to successfully close this acquisition today,” said Lori Ryerkerk, chairman and CEO, in a statement. “With the addition of M&M’s industry-renowned brands and product portfolios, we have established Celanese as the preeminent global specialty materials company. As one team, we will be better positioned to elevate the growth trajectory of Engineered Materials and to create value for our customers and shareholders.”
Based in Dallas, Celanese employs approximately 8,500 employees worldwide and had 2021 net sales of $8.5 billion.
Both DuPont and Celanese said they would provide additional insight on the deal, including how DuPont plans to use the sale proceeds, during their regularly scheduled third quarter earnings reports over the next week.
Earlier this year, DuPont said the net proceeds from the divested M&M businesses will help fund the previously announced $5.2 billion acquisition of Rogers Corp. and further M&A opportunities, in addition to continuing share repurchases.
The divestiture comes amid a time of change for the centuries-old DuPont, with the company targeting a “high-growth, high-value” portfolio centered on electronics, water, protection, industrial technologies and next generation automotive.
DuPont will retain its Auto Adhesives, Multibase and Tedlar product lines following the Celanese sale, which combined generated net sales of approximately $950 million and operating EBITDA of approximately $120 million in 2021.
News of the sale completion caused both DuPont’s and Celanese’s share prices to rise about 3% Tuesday.