DuPont has reached a definitive agreement to divest its Aramids business (Kevlar® and Nomex®) to Arclin for approximately $1.8 billion.
The transaction is structured to provide DuPont with pre-tax cash proceeds of approximately $1.2 billion, a note receivable of $300 million, and a non-controlling equity interest in the future Arclin company valued at $325 million.
The divestiture aims to streamline DuPont's portfolio and enhance its financial profile while maximizing shareholder value.
Transaction Value
The Aramids business transaction is valued at approximately $1.8 billion, with DuPont receiving cash proceeds, a note receivable, and an equity interest in Arclin.
Strategic Focus
The divestiture enhances DuPont's strategic focus by optimizing its portfolio and increasing growth and margin profiles.
Future Participation
DuPont shareholders will have the opportunity to participate in Arclin's growth potential through the retained equity interest in the new entity.
- The divestiture of the Aramids business indicates DuPont's commitment to refining its portfolio and concentrating on core business areas for sustainable growth.
- The transaction is expected to positively impact DuPont's financial positioning by generating significant cash proceeds and allowing continued participation in the growth potential of Arclin.
The agreement to divest the Aramids business to Arclin marks a strategic move by DuPont to strengthen its portfolio and unlock shareholder value. This transaction not only streamlines operations but also positions DuPont for future growth opportunities through its retained equity stake in Arclin.