DuPont has reached a definitive agreement to sell an 80.1% ownership interest in the Delrin acetal homopolymer (H-POM) business to TJC LP, a middle-market private equity firm, for US$1.8 billion.

At close, DuPont will own a 19.9% non-controlling common equity interest in the Delrin business, which will continue to be presented as discontinued operations in DuPont’s consolidated financial statements through transaction closing.

Delrin was designed to replace metal in parts for high-load mechanical applications. It combines low-friction and high-wear resistance with the high strength and stiffness. It also provides a wide operating temperature range (-40°C to 90°C) and good colorability.

Delrin is suitable for high-load mechanical applications such as gears, conveyor belts, healthcare delivery devices, and other demanding products and parts.

“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,” said Ed Breen, DuPont Executive Chairman and Chief Executive Officer.

"Delrin is widely recognized as the material of choice for safety critical and high cost-of-failure applications across diverse end markets,” 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."

TJC has received fully committed financing in connection with the transaction, which is expected to close around year-end 2023, subject to customary closing conditions and regulatory approval.

DuPont has reached a definitive agreement to sell an 80.1% ownership interest in the Delrin acetal homopolymer (H-POM) business to TJC LP, a middle-market private equity firm, for US$1.8 billion.

At close, DuPont will own a 19.9% non-controlling common equity interest in the Delrin business, which will continue to be presented as discontinued operations in DuPont’s consolidated financial statements through transaction closing.

Delrin was designed to replace metal in parts for high-load mechanical applications. It combines low-friction and high-wear resistance with the high strength and stiffness. It also provides a wide operating temperature range (-40°C to 90°C) and good colorability.

Delrin is suitable for high-load mechanical applications such as gears, conveyor belts, healthcare delivery devices, and other demanding products and parts.

“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,” said Ed Breen, DuPont Executive Chairman and Chief Executive Officer.

"Delrin is widely recognized as the material of choice for safety critical and high cost-of-failure applications across diverse end markets,” 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."

TJC has received fully committed financing in connection with the transaction, which is expected to close around year-end 2023, subject to customary closing conditions and regulatory approval.