DuPont Sells 80% of its ownership in Delrin Business for USD 1.8 Billion to TJC

DuPont has signed an agreement with TJC concerning the divestiture of its 80.1% stake in Delrim business to the latter, valued at USD 1.8 billion. Speaking of this, TJC has managed to get the full financial backup for the deal, which could drift to be wrapped up by the end of this year.

When the deal concludes, DuPont is set to get roughly $1.25 billion in pre-tax cash, with adjustments as per the standard norm, a receivable note of $350 million, and will possess a 19.9% stake without control in the Delrin enterprise's common equity.

DuPont's Executive Chairman and Chief Executive Officer, Ed Breen, mentioned that the latest news nearly wraps up their intended departure from the former M&M segment. This step reinforces their stance as a top-tier multi-industrial firm. He stressed that this arrangement is crafted to optimize shareholder value, ensuring a hefty cash inflow at the deal's culmination. It aligns with the firm's strategic intents and grants DuPont a chance to tap into potential gains when they decide to let go of their equity stake in the Delrin venture.

Furthermore, Breen expressed enthusiasm about joining forces with TJC. He acknowledged TJC's impressive history of adding value through an operational focus. He is optimistic about TJC's capability to usher in expansion and create opportunities for Delrin's workforce and clientele.

Ian Arons, a partner at TJC, pointed out Delrin's esteemed status as the preferred material in applications that demand top-notch safety or where failure is costly. For over six decades, Delrin has capitalized on its unique tech offerings and its worldwide manufacturing base to cater to its clients with pioneering, quality-centric solutions. He expressed his delight at partnering with DuPont and conveyed his eagerness to closely collaborate with the whole Delrin crew to further propel the business's growth.

The Delrin enterprise's operational outcomes will remain under the "discontinued operations" category in DuPont's collective financial records until the deal is finalized.

Goldman Sachs & Co. LLC is in the role of a financial consultant for DuPont, while Skadden, Arps, Slate, Meagher & Flom LLP is offering legal guidance. On TJC's side, Citi is the financial advisor and Kirkland & Ellis LLP is providing legal advice.

There are ongoing processes to furnish and discuss details with the appropriate works councils linked to the transaction. In line with specific works council stipulations in the Netherlands, TJC has committed to acquiring the Delrin venture in the country, provided DuPont exercises a certain option post the mandatory works council discussions.

According to Procurement Resource, DuPont is dispossessing its 80.1% stake in the Delrin business to TJC for USD 1.8 billion. Fully financed by TJC, the deal is set to conclude by year-end. DuPont will receive approximately $1.25 billion in cash, a $350 million note, and retain a 19.9% stake in Delrin's equity. This move aligns with DuPont's strategic intent and marks their near exit from the M&M segment, emphasizing their position as a multi-industrial leader. Ed Breen of DuPont and Ian Arons of TJC both highlighted the deal's mutual benefits and Delrin's significance in the market. Legal and financial advisories are in place for both parties.