Issue 22, 2021 - DuPont makes a major strategic adjustment

DuPont makes major strategic adjustments

On November 2, DuPont announced that it would make a major strategic adjustment to acquire electronic materials maker Rogers for $5.
2 billion and plan to sell most of its engineering plastics business
.

DuPont said the enterprise value multiple of the transaction is approximately 19 times the estimated operating profit before interest, taxes, depreciation and amortization (EBITDA) in 2022, and the acquisition is expected to close in the second quarter of 2022, subject to regulatory and Rogers shareholder approvals
.
Rogers shareholders will receive $277 in cash per share, 33% above Rogers' closing price on November 1, 2021, and 46%
above the 1-month weighted average share price.

On the same day, DuPont also announced plans to divest its mobile and materials divisions, primarily the engineering polymers and performance resins business lines, as well as DuPont's stake
in the DuPont Teijin film joint venture.
These businesses had total revenue of approximately $4.
2 billion and EBITDA of approximately $1 billion
in 2021.
The product line for sale includes nylon, polyacetal, thermoplastic polyesters and elastomers, ethylene acrylic elastomers, some polyethylene fluorine materials, and specialized thick films and ceramic tapes
for microcircuit materials.

DuPont said the series of moves will strengthen DuPont's position
in high-growth, high-margin markets.
DuPont will focus more on industries with long-term stable growth trends, such as electronics, water, protection, industrial technology and high-growth industries
such as next-generation vehicles.