DuPont to buy Rogers, divest ‘substantial portion’ of its materials segment
Canadian Plastics
MaterialsThe Rogers deal will expand DuPont’s position in the electric vehicles, advanced driver assistance systems, 5G telecommunications, and clean energy end markets.
In a bid to strengthen its involvement in what it calls “high-growth, high-margin markets,” chemical maker DuPont has entered into a definitive agreement to acquire engineered materials and components maker Rogers Corp. for US$5.2 billion, and is also divesting “a substantial portion” of its mobility and materials segment.
“With [these] announcements, we are sharpening our focus on high-growth, high-value opportunities in sectors with steady long-term secular growth trends where our global innovation leadership enables a competitive advantage,” said Ed Breen, DuPont’s executive chairman and CEO. “Moving forward, our portfolio will be centered on key pillars – electronics, water, protection, industrial technologies and next generation automotive. These strategic steps are expected to create tremendous opportunities for DuPont and Rogers employees and unlock significant value for shareholders.”
Rogers designs, develops, manufactures and sells engineered materials and components through its advanced electronics solutions (AES) and elastomeric material solutions (EMS) segments. Headquartered in Chandler, Arizona, Rogers employs more than 3,500 employees with a global network of 14 manufacturing sites in North America, Europe, and Asia and 2021 expected revenues of approximately US$950 million.
The DuPont businesses within the mobility and materials segment that are in-scope for intended divestiture, meanwhile, are predominantly those in the engineering polymers and performance resins lines of business, as well as the company’s stake in the DuPont Teijin Films joint venture. The in-scope product lines include brands such as Zytel, Delrin, Hytrel, Crastin, Vamac and Tedlar. “Combined, these businesses represent approximately US$4.2 billion in revenue and about US$1.0 billion of operating EBITDA based on full year 2021 estimates,” DuPont said.
The Rogers purchase is expected to close in the second quarter of 2022, DuPont said, subject to customary closing conditions.
DuPont is headquartered in Wilmington, Del.
