DuPont Sells Aramids Business to Arclin for $1.8 Billion.

DuPont has reached a definitive agreement to sell its Aramids business (Kevlar and Nomex) to Arclin for approximately $1.8 billion. The transaction is expected to close in Q1 2026, subject to customary conditions and regulatory approval. DuPont will receive $1.2 billion in pre-tax cash proceeds, a $300 million note receivable, and a non-controlling common equity interest in Arclin. The sale will streamline DuPont's portfolio and improve its financial profile.

DuPont has reached a definitive agreement to sell its Aramids business, including the iconic Kevlar® and Nomex® brands, to Arclin for approximately $1.8 billion. The transaction is expected to close in Q1 2026, subject to customary conditions and regulatory approval. DuPont will receive $1.2 billion in pre-tax cash proceeds, a $300 million note receivable, and a non-controlling common equity interest in Arclin.

The sale will streamline DuPont's portfolio and improve its financial profile. The Aramids business, which generated net sales of $1.3 billion in 2024, includes approximately 1,900 employees and five manufacturing sites. The deal is expected to close in Q1 2026, subject to regulatory approval. This divestiture will not affect DuPont's planned separation of its electronics business (Qnity), scheduled for November 1, 2025 [2].

DuPont's $1.8 billion Aramids divestiture strengthens its financial profile while maintaining upside potential through strategic equity retention. The transaction structure includes $1.2 billion in cash, a $300 million note receivable, and a 17.5% equity stake valued at $325 million in the future Arclin company. This transaction structure accomplishes two key objectives: it provides substantial immediate liquidity while maintaining participation in the future growth potential of the combined entity [2].

The acquisition will expand Arclin's portfolio to include aerospace, electrical infrastructure, electric vehicles, personal protection, and defense, while building on its strong positions in construction, infrastructure, weather and fire protection, and transportation. Arclin's cutting-edge technologies are mission critical and drive essential products that protect and enhance everyday life [3].

Arclin is a leading materials science company and manufacturer of polymer technologies, engineered products, and specialized materials for various industries. Headquartered in Alpharetta, Georgia, Arclin has offices and manufacturing facilities throughout the U.S., Canada, and U.K. and manufactures for customers worldwide [3].

This move resembles similar divestiture strategies employed by other chemical conglomerates seeking to optimize their business mix, focus on higher-growth segments, and unlock shareholder value through streamlined operations [1].

References:
[1] https://www.stocktitan.net/news/DD/arclin-enters-into-definitive-agreement-to-acquire-aramids-business-pxysl65wqt30.html
[2] https://www.stocktitan.net/news/DD/du-pont-announces-agreement-to-divest-aramids-business-to-6re6k8iume99.html
[3] https://www.prnewswire.co.uk/news-releases/arclin-enters-into-definitive-agreement-to-acquire-aramids-business-including-kevlar-and-nomex-brands-from-dupont-302541763.html