DuPont Sells Aramids Business for $18 Billion to Streamline Portfolio

DuPont, a global materials and chemical company headquartered in Delaware, has announced its agreement to sell its Aramids business to Arclin, a related company of TJC. The transaction, valued at approximately $18 billion, aims to streamline DuPont's business portfolio and enhance its financial fundamentals. The deal includes DuPont receiving around $12 billion in pre-tax cash, a $3 billion promissory note, and a non-controlling equity stake in Arclin, valued at approximately $3.25 billion. This equity stake is expected to represent about 17.5% of Arclin's shares at the time of closing.

DuPont's Aramids business is a leading innovator and global producer of synthetic fibers, including Kevlar and Nomex. The business employs 1,900 people and operates five large manufacturing facilities, with an estimated net sales of around $1.3 billion for 2024. The sale of this business is part of DuPont's ongoing strategy to focus on high-growth sectors such as electronic materials, water technology, and high-performance materials. By divesting non-core assets like Aramids, DuPont aims to improve its capital efficiency and valuation transparency.

Lori Koch, DuPont's CEO, commented on the transaction, stating, "This Aramids business deal further strengthens our strategic focus on our core businesses and allows DuPont shareholders to benefit from Arclin's strong growth potential through our retained equity stake." DuPont's history dates back to 1802, and the company has undergone significant transformations, including a merger with Dow Chemical in 2017 and a subsequent split into three separate entities—DuPont, Dow, and Corteva—in 2019.

The sale of the Aramids business is the latest in a series of moves by DuPont to optimize its asset portfolio. The company has been focusing on shedding non-core assets and concentrating on high-growth, high-margin businesses. This strategy is expected to enhance DuPont's profitability and strategic focus on core, high-value-added materials and technology platforms. By streamlining its operations and divesting non-core assets, DuPont aims to create a more efficient and valuable business model, positioning itself for long-term growth and success.