DuPont Sells Majority Share of Acetal Business to Private Equity

DuPont has reached a definitive agreement to sell an 80.1% ownership interest in its Delrin acetal homopolymer business to TJC LP (TJC) in a transaction valued at $1.8 billion.

TJC, a middle-market private equity firm, has received fully committed financing in connection with the transaction, which is expected to close around year-end 2023, subject to customary closing conditions and regulatory approval.

Early last year, Celanese Corp. signed last week a definitive agreement to acquire a majority of the Mobility & Materials (M&M) business of DuPont, which will be added to Celanese’s Engineering Materials (EM) business.

“Today's announcement largely completes our planned exit of the former M&M segment, advancing our position as a premier multi-industrial company,” states Ed Breen, DuPont executive chairman and CEO. “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.”

Breen adds: “We are excited to partner with TJC given their successful track record of creating value through an operations-focused approach and are confident in their ability to drive growth and opportunity for employees and customers of the Delrin business.”

“Delrin is widely recognized as the material of choice for safety critical and high cost-of-failure applications across diverse end markets,” says Ian Arons, a TJC partner. “For over 60 years the Delrin business has leveraged its differentiated technologies and global manufacturing presence to provide its customers high quality, innovative solutions. We are thrilled to have DuPont as a partner, and we look forward to working closely with the entire Delrin team to drive future growth in the business.”