DuPont Co. is strategically enhancing its portfolio, unveiling plans to divest a substantial portion of its mobility and materials segment and acquire Rogers Corp. in a deal worth $5.2 billion.
The restructuring moves are part of the Wilmington, Del.-based chemical company's strategy to become a "premier multi-industrial company focused on market-leading high-growth, high-margin businesses with complementary technology and financial characteristics," DuPont said in a Nov. 3 statement.
Businesses within the mobility and materials segment that are in line for divestment are predominantly those in the engineering polymers and performance resins sectors as well as the company's stake in the DuPont Teijin Films joint venture.
These include brands such as Zytel nylon 6/6, Delrin acetal resins, Hytrel thermoplastic polyester elastomers, Crastin polybutylene terephthalate, Vamac ethylene acrylic elastomers and Tedlar polyvinyl fluoride.
Combined, these businesses represent approximately $4.2 billion in sales and about $1 billion of operating profit based on full-year 2021 estimates, DuPont said.
DuPont also entered into a definitive agreement to acquire Chandler, Ariz.-based Rogers, a specialist in engineered materials and components.
"The transaction delivers substantial value to Rogers' shareholders who will receive $277 in cash per share, representing a 33 percent premium over Rogers' closing share price on Nov. 1, 2021, and a 46 percent premium to the 1-month volume weighted average share price," Rogers said in a statement.
DuPont said Rogers' value-added products, such as high-frequency circuit materials, ceramic substrates for power semiconductor devices, and high-performance foams, will offer it competitive edge.
Rogers has a work force of more than 3,500 employees and operates a global network of 14 manufacturing sites in North America, Europe and Asia. Its 2021 expected sales are approximately $950 million.
The Rogers purchase is expected to close in the second quarter of 2022, DuPont said, subject to customary closing conditions.
"With today's announcements, we are sharpening our focus on high-growth, high-value opportunities in sectors with steady long-term secular growth trends," Ed Breen, chairman and CEO of DuPont, said in a statement.
Moving forward, he said, DuPont's portfolio will be centered on "pillars of electronics, water, protection, industrial technologies and next-generation automotive."
"We are committed to investing in each of these pillars organically and through strategic acquisitions to maximize our capabilities in areas that enable our customers to grow by delivering next generation technologies and sustainable high value-added solutions," he said.
"These strategic steps are expected to create tremendous opportunities for DuPont and Rogers employees and unlock significant value for shareholders."
Bruce Hoechner, Rogers' president and CEO, said DuPont is a "natural fit" for the specialty engineered materials company.
"DuPont is a proven leader in advanced specialty materials, and Rogers will benefit from DuPont's global reach and strong technical and commercial depth," he said. "Like DuPont, Rogers' success is built upon a dedicated team of people committed to excellence and technology leadership to solve our customers' most complex application challenges.
"This combination will create an exciting next chapter for Rogers' customers, employees and partners."
European Rubber Journal contributed to this report.