Private equity firm TJC LP of New York has agreed to buy 80 percent of DuPont Co.'s Delrin acetal homopolymer (H-POM) business.
The sale is valued at $1.8 billion, Wilmington, Del.-based DuPont said in an Aug. 21 news release. The Delrin business has annual sales of about $550 million.
A DuPont spokesman said the business employs about 600 and operates production sites in Parkersburg, W.Va., and Dordrecht, Netherlands.
At closing, which is expected by the end of the year, DuPont will receive pre-tax proceeds of about $1.25 billion and a note receivable of $350 million. DuPont will retain 19.9 percent non-controlling common equity interest in Delrin.
Ed Breen, DuPont executive chairman and CEO, said the transaction will generate "significant cash proceeds at close … while providing an opportunity for DuPont to participate in future upside potential upon exit of our retained equity interest in the Delrin business."
The deal wraps up most of the sale of DuPont's Mobility & Materials unit. In February, Dallas-based Celanese Corp. said it would acquire a majority of that unit for $11 billion in cash.
The M&M deal included a major nylon resin business, but not DuPont's Tedlar fluoropolymer, Multibase silicone additives or Delrin businesses.
TJC, founded in 1982, was previously known as The Jordan Co.