Divestment Deal Celanese to Acquire Majority of DuPont’s Mobility & Materials Business for 11-Billion-Dollars
Celanese will be taking over more than 80 % of DuPont’s Mobility & Materials business including its Engineering Polymers business line and select product lines within the Performance Resins and Advanced Solutions business lines. The deal compliments Celanese’s business and will help speed up the company’s growth in future mobility, connectivity and medical.
Wilmington/USA – DuPont has entered into a definitive agreement with Celanese Corporation to divest a majority (more than 80 %) of the Mobility & Materials segment including the Engineering Polymers business line and select product lines within the Performance Resins and Advanced Solutions business lines for 11.0 billion dollars in cash, subject to customary transaction adjustments in accordance with the definitive agreement, which represents an enterprise value multiple of ~14x 2021 operating EBITDA. Combined, these businesses generated net sales of approximately 3.5 billion dollars and operating EBITDA of approximately 0.8 billion dollars 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 in connection with the transaction. The transaction is expected to close around the end of 2022, subject to customary closing conditions and regulatory approvals.
“The transaction with Celanese that we are announcing today will create a market-leading portfolio serving the automotive, consumer and industrial markets with unmatched scale, manufacturing capability 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 be even stronger when combined with the highly complementary portfolio of Celanese.”
Lori Ryerkerk, Celanese Chairman and Chief Executive Officer said, “Our businesses are highly complementary which will accelerate our growth in high-value applications including future mobility, connectivity and medical.”
The Auto Adhesives, Multibase and Tedlar product lines within the Mobility & Materials segment (the retained M&M businesses) are not included in the scope of the intended divestitures. Beginning in the first quarter 2022, DuPont will report the retained M&M businesses in Corporate for current and historical periods. In aggregate, the retained M&M businesses generated net sales of approximately 0.95 billion dollars and operating EBITDA of approximately 0.12 billion dollars in 2021.
DuPont intends on using the net proceeds from the divested M&M businesses to fund the previously announced acquisition of Rogers Corporation and further M&A opportunities in addition to continuing share repurchases as part of a balanced financial policy.