Global materials firm DuPont Co. is acquiring specialty products maker Laird Performance Materials for $2.3 billion in cash.
Cleveland-based Laird is a major supplier of electromagnetic shielding and thermal management products. Plastic-related products made by Laird include gaskets, tapes, foams and microwave absorbers. The firm employs more than 4,300 at 11 global sites and posted sales of $465 million in 2020.
DuPont of Wilmington, Del., is acquiring Laird from Boston-based private equity firm Advent International. Advent had acquired Laird plc of London in 2018 and split the firm into three businesses, including Laird Performance Materials.
In a March 8 news release, DuPont officials said that the deal strengthens the firm's leadership position in advanced electronic materials for key markets including smart/autonomous vehicles, 5G telecommunications, artificial intelligence and high-performance computing.
They added that the acquisition adds capabilities and offerings in thermal management and electromagnetic shielding for emerging electronic applications. Laird "is aligned with DuPont's strategic objective of shifting its portfolio increasingly towards differentiated products in attractive markets with long-term secular growth trends," officials said.
DuPont Chairman and CEO Ed Breen added that the acquisition "is a significant step in advancing DuPont's strategy to grow as a global innovation leader and premier multi-industrial company."
DuPont now will be able to combine its own technology portfolio in films, laminates and plating chemistry with Laird's electromagnetic shielding and thermal management solutions, officials added.
The deal is expected to generate about $60 million in cost synergies for DuPont by the end of 2024, with the majority realized in the first 18 months post-closing.
"This transaction represents another strategic step forward in sharpening our focus and directing our investments towards high-value, high-growth opportunities," Breen said.
DuPont is a major global producer of specialty chemicals and plastics, including nylon resin. The firm posted sales of $20.4 billion in 2020.