DuPont announces agreement with TJC to divest approximately 80% ownership of Delrin® business

DuPont recently announced that it has reached a definitive agreement to sell an 80.1% ownership interest in its Delrin® homopolymer (H-POM) business1 to TJC LP (hereinafter referred to as TJC)
, the deal was valued at $1.8 billion.

TJC has received fully committed financing in connection with the transaction, which is expected to close around the end of 2023, subject to customary closing conditions and regulatory approvals.

Upon completion of the transaction, DuPont will receive approximately $1.25 billion in pre-tax cash proceeds (adjusted for customary transaction adjustments), $350 million in notes receivable, and will own 19.9% ​​of the Delrin business
non-controlling common stock interests.

DuPont Executive Chairman and CEO Ed Breen
“Today’s announcement largely reflects the completion of our planned divestiture of the former Transportation and Materials business unit, further solidifying our positioning as a more focused, cross-industry company. This transaction aims to In maximizing value for our shareholders, the substantial cash proceeds from the transaction will be deployed in accordance with our strategic priorities and, through our
By retaining equity in the Delrin business, DuPont will still have the opportunity to share in its future growth potential after its exit. ”

Pu Ruiting added: “We are pleased to reach a cooperation with TJC. They have a long and successful experience in creating value through operations. We believe that TJC
Ability to drive growth and create opportunities for employees and customers of Delrin’s businesses. ”

Ian Arons, partner at TJC, said: “Across multiple end markets, Delrin is widely viewed as the material of choice for safety-critical applications where failure is costly. 60
Over the years, Delrin
The business always leverages its differentiated technology and global production layout to provide customers with high-quality innovative solutions. We are delighted to have DuPont as a partner and look forward to working closely with the entire Delrin team to drive future growth of the business. ”

Until the transaction closes, the operating results of the Delrin business will continue to be presented as a discontinued operation in DuPont’s consolidated financial statements.

DuPont’s financial advisor in this transaction was Goldman Sachs & Co. LLC, and its legal advisor was Skadden, Arps, Slate,
Meagher & Flom LLP. TJC’s financial advisor is Citi and its legal advisor is Kirkland & Ellis LLP.