Celanese Corp. executives say their company's pending $11 billion cash offer for the bulk of DuPont Co.'s Mobility & Materials business is "unique and unparalleled."
The business being acquired has annual sales of about $3.5 billion. DuPont said the sale price represents an enterprise value multiple of around 14 times the unit's 2021 operating EBITDA.
The deal includes Zytel and Rynite nylon, Crastin polybutylene terephthalate, and Vamac and Hytrel elastomers.
"This acquisition will establish Engineered Materials as the preeminent specialty materials company," Celanese Chief Financial Officer Scott Richardson said.
He added that Celanese should be able to benefit from the DuPont deal in the same way that it's benefited from its previous acquisition of the Santoprene thermoplastic vulcanizate (TPV) business.
"These are recognizable brands [at DuPont] and much like when we did the Santoprene acquisition, customers ask for the brand; they don't ask for the chemical name," Richardson said.
"They ask for the DuPont brand and the power of that, when you take that brand equity and put that onto the way that we drive projects ... we think bringing that together with the legacy Celanese polymers ... gives us really good revenue synergy optimization opportunities."
Tom Kelly, senior vice president for Celanese Engineered Materials, added that "in terms of the quality of the businesses ... DuPont is far and away the leader in (nylon 6/6) and in the Hytrel elastomer space."
"They've just got a fantastic portfolio of vertically integrated polymer families that link up really well with what we do, so we're really excited about having those as part of the portfolio," he said.
Moving ahead, Kelly added that "we are going to do what we've been doing in our own assets, which is really looking at opportunities to get more efficient on using lines, a lot less changeovers, putting single polymers on each line. ... That naturally gives us the ability to get more on stream reliability time and get more capacity out."
Celanese also could grow in medical and electrical/electronics markets from the deal.
"In medical, where we have a really strong channel to market and have been in that market for many years, DuPont hasn't really been playing very much. ... So, that's wide open space for us," Kelly said. "If you look at the E&E space, what's interesting is we were about the same size as DuPont on a revenue basis. If you can think about the scale of us taking the DuPont portfolio more broadly into our E&E customers, there's a lot of opportunity there."
The acquisition of DuPont Teijin Films also will provide a growth opportunity for Celanese. "We saw [DuPont Teijin Films] as two things," Kelly said. "One, a downstream consumer of Rynite PET, so it's important to continue that vertical integration. And we also thought about it as the ability to access a different form factor for Celanese.