DuPont buys molder Donatelle, boosting medical device business

DuPont Co. is taking another step in its downstream transformation into medical device manufacturing with a deal to buy Donatelle Plastics Inc., a New Brighton, Minn.-based injection molder.

The proposed deal follows DuPont's 2023 purchase of Spectrum Plastics Group, and more recently its announced plan to split into three companies.

DuPont said Donatelle Plastics adds complementary technology and capabilities including medical device injection molding, liquid silicone rubber processing, precision machining, device assembly and tool building.

"Our health care strategy is focused on offering a comprehensive suite of solutions for customers in high-growth therapeutic areas," said Jon Kemp, president of DuPont Electronics & Industrial (E&I), in a June 25 news release.

Terms were not disclosed. The deal is scheduled to close in the third quarter of 2024.

Donatelle was founded in 1967 and employs more than 400.

"We're excited for this next chapter in Donatelle's journey and for our team of highly talented and skilled employees to join DuPont," said President Treasa Springett.

"As a part of a broader health care offering, we will have even greater impact on patient outcomes by enabling the innovation and development of next generation devices for patients worldwide," Springett said.

Donatelle capabilities also include micromolding and prototyping. Plastics News estimated Donatelle's 2022 sales at $88 million, but did not estimate the firm's 2023 sales.

When DuPont finalized the purchase of Alpharetta, Ga.-based Spectrum in August 2023, it said the business had 2,200 employees and annual sales of about $500 million.

In addition to injection molding, Spectrum is also a major extruder of medical tubing.

Key medical molding markets for Donatelle include electrophysiology, drug delivery, diagnostics, cardiac rhythm management, neurostimulation, and orthopedic extremities.

In May, DuPont announced a plan to split into three publicly traded companies. Under the plan, DuPont is spinning off its electronics and water businesses into new firms, with the remaining DuPont continuing as a diversified industrial company.

Under that plan, Spectrum and Donatelle will be part of the legacy DuPont business, which they're calling New DuPont.

The split into three companies is expected to be complete between late 2025 and June 2026.

While terms of the Donatelle deal have not been disclosed, DuPont previously announced that it paid $1.75 billion for Spectrum Plastics, which represented a multiple of almost 16 times Spectrum's 2023 forecast earnings before interest, taxes, depreciation and amortization (EBITDA).

DuPont's plastics businesses have changed dramatically in just the past few years. In 2022 DuPont sold most of its resin businesses, including nylon, to Celanese Corp. for $11 billion in cash. Those businesses had annual sales of about $3.5 billion.

That deal didn't include Tedlar fluoropolymer, Multibase silicone additives or Delrin acetal brands. DuPont then sold 80 percent of the acetal business to private equity firm TJC LP in 2023. That business has since been renamed Delrin USA LLC.