Manufacturing & Distribution - Delaware Business Times

DuPont Spectrum

Bioscience and pharmaceutical, Economic Development, Manufacturing & Distribution, New Castle County, News

DuPont to buy Spectrum Plastics for $1.75B

Jacob Owens May 2, 2023

DuPont has reached a deal for Spectrum Plastics Group, a specialty plastics manufacturer that focuses on the growing biopharmaceutical market.

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ILC Dover NASA space Frederica

Insider Only, Kent County, Manufacturing & Distribution, News, Technology & IT

🔒 🔒 ILC Dover to expand space work in Delaware

Jacob Owens April 28, 2023

FREDERICA – ILC Dover, the diversified private manufacturing company, is expanding its aerospace production in Delaware while moving its existing biopharmaceutical production to Mexico. The changes will impact about 140 […]

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Compact Membrane Systems CMS Newport Delaware John Carney Christine Parrish

Economic Development, Energy, Insider Only, Manufacturing & Distribution, New Castle County, News

🔒 🔒 Compact Membrane Systems eyes growth

Jacob Owens April 26, 2023

NEWPORT – Much like the petrochemical industry that it has long served, Compact Membrane Systems is evolving its products to help meet the planet’s decarbonization goals. Founded 30 years ago […]

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Fisher's Popcorn Rehoboth Beach Delaware Frankford

Economic Development, Government, Insider Only, Manufacturing & Distribution, News, Sussex County

🔒 🔒 Delaware beach staple Fisher’s Popcorn eyes expansion

Jacob Owens April 24, 2023

Fisher’s Popcorn, a family-run business at Delaware beaches, is planning a nearly $5 million expansion that will help it enter more stores.

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IKO plant Edgemoor East Capital Partners=

Commercial Real Estate, Economic Development, Insider Only, Manufacturing & Distribution, New Castle County, News

🔒 🔒 Investment firm buys former IKO plant for $10M

Jacob Owens April 20, 2023

An upstart Connecticut-based real estate investment firm has acquired the former IKO shingle manufacturing plant in a $10.5 million deal.

0 Comment 434 Views

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DuPont has reached a deal for Spectrum Plastics Group, a specialty plastics manufacturer that focuses on the growing biopharmaceutical market. | DBT PHOTO BY JACOB OWENS[/caption] WILMINGTON – About six months after ending its pursuit of a major acquisition of Rogers Corp., DuPont announced Tuesday morning that it has reached a smaller deal for a specialty plastics manufacturer that focuses on the growing biopharmaceutical market. The Wilmington-based advanced materials company has agreed to acquire Atlanta-based Spectrum Plastics Group for $1.75 billion from its private equity firm owner, AEA Investors. That price is about 15.6 times the 2023 forecast EBITDA for Spectrum and will be paid from cash savings. DuPont has significant reserves after selling its Mobility & Materials segment to Celanese Corp. for $11.2 billion last year. The deal is anticipated to close in the third quarter, subject to regulatory approvals and other customary closing conditions. Spectrum, which has 2,200 employees in 20 locations in North and Central America, the closest of which is in Wall Township, N.J., focuses on specialty medical devices and components, with a strategic focus on key fast-growing therapeutic areas such as structural heart, electrophysiology, surgical robotics and cardiovascular. It produces a variety of tubing, catheters, balloons, laser processing, injection molding and packaging films, working with 22 of the top 26 medical device original equipment manufacturers (OEMs). The addition of Spectrum would complement DuPont’s existing offerings for biopharma and pharma processing, medical devices and packaging, including its Liveo silicone solutions and Tyvek medical packaging, the company said. It also would result in about 10% of DuPont's consolidated revenue coming from health care, which is considered a low-cyclicality market. In a Tuesday earnings call with analysts, DuPont CEO Ed Breen noted that Spectrum has been a DuPont customer and the company has eyed it as an acquisition target “for a very long time.” “The real opportunity here is going to be on the growth side,” he said. “Our relationships at DuPont are mainly … with the biopharma OEMs. Spectrum’s [relationships] are more with the medical device OEMs, but a lot of our technology actually goes through companies like Spectrum into that industry. So when we look at the ability for DuPont to move our technologies and material science into the medical device market with Spectrum and the opposite of that, Spectrum moving into the biopharma space … we can drive some nice incremental growth.” Delivering consistent high single-digit growth rates for many years, Spectrum is expected to generate revenues of about $500 million this year, according to DuPont CEO Ed Breen. DuPont will also continue to look to sell its industrial strength resin Delrin product line, with a sale anticipated to be completed by the end of this year. Breen said that proceeds from that sale would not drive further deals right now. “Right now, there is nothing else on the radar screen over the next year on the M&A side,” he said. “If I had to say right now, with any extra proceeds, I think we would lean towards additional share repurchase.”