DuPont sells majority of Delrin business to private equity firm TJC

Chemical maker DuPont Co. is selling 80 per cent of its Delrin acetal homopolymer (H-POM) business to private equity firm TJC LP of New York, in a transaction valuing the business at US$1.8 billion.

In an Aug. 21 news release, Wilmington, Del.-based DuPont said the Delrin business has annual sales of about US$550 million.

“[This] announcement largely completes our planned exit of the former [M&M Mobility & Materials] segment, advancing our position as a premier multi-industrial company,” said Ed Breen, DuPont executive chairman and CEO. “This transaction is structured to maximize value for our shareholders, providing significant cash proceeds at close to be deployed in line with our strategic priorities while providing an opportunity for DuPont to participate in future upside potential upon exit of our retained equity interest in the Delrin business.”

DuPont described its Delrin resin as the “material of choice” for safety critical and high cost-of-failure applications across diverse end markets. “For over 60 years the Delrin business has leveraged its differentiated technologies and global manufacturing presence to provide its customers high quality, innovative solutions,” said Ian Arons, TJC Partner. “We are thrilled to have DuPont as a partner, and we look forward to working closely with the entire Delrin team to drive future growth in the business.”