DuPont de Nemours Inc. has agreed to sell a controlling stake in Delrin to private equity firm The Jordan Company in a deal valuing the resins unit at $1.8 billion.
(Bloomberg) — DuPont de Nemours Inc. has agreed to sell a controlling stake in Delrin to private equity firm The Jordan Company in a deal valuing the resins unit at $1.8 billion.
Wilmington, Delaware-based DuPont will sell 80.1% of Delrin, with the transaction expected to close around the end of the year, according to a statement on Monday that confirmed an earlier Bloomberg News report. DuPont will hold the remaining interest.
Jordan prevailed over firms Lone Star Funds and Platinum Equity, which had also been competing for the asset, Bloomberg News previously reported.
“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,” Ed Breen, DuPont’s executive chairman, said in a statement.
The divestiture underscores DuPont’s refocus on electronics, automotive and water and industrial technologies. Under Breen, the company merged with Dow Chemical Co. in 2017 and then reorganized into three independent businesses with the bulk of its mobility and materials arm sold to Celanese Corp in 2022.
New York-based Jordan, a middle-market firm, has a long history of investing in chemical companies, having owned stakes in Arclin, Vantage and Polymer Solutions Group, according to its website. Delrin makes chemicals with lightweight properties that can be used as a substitute for metals in products ranging from mechanical gears to zip fasteners.
Goldman Sachs Group Inc. advised DuPont on the deal, while Citigroup Inc. worked with Jordan.
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