DuPont to Sell Transportation And Materials Division to Celanese for $11 Billion

On February 18, 2022, DuPont announced a definitive agreement with Celanese Corporation to divest most of the Mobility and Materials divisions, including the Engineering Polymers business line and select high-performance resins for $11 billion (approximately RMB 69.7 billion) in cash and product lines in the Advanced Solutions business line, subject to customary transaction adjustments subject to definitive agreements, representing an enterprise value multiple of approximately 14 times 2021 operating EBITDA. Combined, these businesses generate approximately $3.5 billion in net sales and approximately $800 million in operating EBITDA in 2021. The cash tax rate on the sale to Celanese is expected to be in the mid-to-high single digits.

Celanese has received fully committed financing related to the transaction. The transaction is expected to close around the end of 2022, subject to customary closing conditions and regulatory approvals.

"The transaction we announced today with Celanese will create a market-leading portfolio serving the automotive, consumer and industrial markets with unparalleled scale, manufacturing capabilities and technical expertise," said Ed Breen, executive chairman and chief executive officer of DuPont. "We are proud of the strength of these industry-leading businesses, which we believe will become even stronger when combined with Celanese's highly complementary product portfolio. We believe they will continue to work together to drive industry-defining materials science innovation for customers and the value chain."

"We are delighted to welcome future colleagues from DuPont who have built a portfolio of world-class products and technologies that are highly regarded in the industry," said Lori Ryerkerk, Celanese Chairman and CEO. "Our businesses are highly complementary and It will accelerate our growth in future high-value applications such as mobility, connectivity and healthcare."

This transaction is an important milestone in the transformation of DuPont, which has recently acquired Laird Performance Materials and intends to acquire Rogers Corporation, further defining DuPont as a market leader in electronics, water, and industrial. technology, protection and next-generation vehicles,” Brin continued. “This agreement also creates significant value for DuPont shareholders. After considering multiple transaction structures, including a range of potential buyers, we believe that the transaction we announced with Celanese will deliver the greatest value to our shareholders and the long-term success of the business and our employees. "

In addition, DuPont is advancing the sale of its Delrin acetal (POM) resin business, with sales of $550 million in 2021, with the transaction planned to close in the first quarter of 2023.

It is understood that Celanese was founded in 1918 and is headquartered in Irvine, Texas, USA. Celanese is a global technology and specialty materials company, one of the largest producers of acetyl-based products in virtually every major industry, and a global producer of high-performance engineering polymers for a variety of high-value applications. The company's product portfolio serves a range of different end uses including paints and coatings, textiles, automotive applications, consumer and medical applications, performance industrial applications, filtration applications, paper and packaging, chemical additives, construction, consumer and industrial adhesives , and food and beverage applications. Net sales in 2021 will be $8.5 billion, up 51% year over year. Ranked 14th among the top 50 U.S. chemical companies in 2021 released by American Chemical and Engineering News.

In fact, this is not the first time Celanese has acquired a DuPont business. In May 2010, Celanese's high-performance engineering plastics business has successfully acquired DuPont Zenite LCP (liquid crystal polymer) and Thermx PCT (high-performance polyester resin).