DuPont (DD.US) continues to optimize its balance sheet to sell aramid business valued at US$1.8 billion

The Zhitong Finance App learned that DuPont (DD.US) said on Friday that it had agreed to sell its Aramids (Aramids) business unit to TJC affiliate Arclin. The deal gave an initial valuation of DuPont's business of about 1.8 billion US dollars, aimed at further streamlining DuPont's new business portfolio and continuing efforts to improve the company's financial fundamentals.

Under the terms of the deal, DuPont will receive approximately $1.2 billion in pre-tax cash proceeds, a note receivable of approximately $300 million, and future Arclin's non-controlling common equity interest (currently valued at around $325 million). The equity asset is expected to account for approximately 17.5% of the shares at the time of delivery.

DuPont's aramid business is the inventor of the industry-leading synthetic fibers Kevlar (Kevlar) and Nomex (Nomex) and one of the world's largest production operations; DuPont's business has 1,900 employees and 5 large manufacturing sites, and achieved net sales of approximately US$1.3 billion in 2024.

“This Aramid business transaction further strengthens the strategic focus of our business portfolio... while also enabling DuPont shareholders to share Arclin's strong growth potential through our reserved shares,” said Lori Koch, DuPont CEO.

DuPont de Nemours, Inc. (DuPont de Nemours, Inc.) is a multinational materials and chemical company headquartered in Wilmington, Delaware, USA. Its predecessor dates back to 1802 and has gone through a merger and re-split with Dow Chemical (merged into DowDuPont in 2017 and split into DuPont, Dow, and Cordiva in 2019).

In recent years, DuPont has focused on reducing burdensome business and focusing on booming business sectors (such as electronic materials/water technology/high-performance materials), and improving capital efficiency and valuation transparency through divestment of non-core assets (such as aramid) + spin-off and listing. In the short term, the traditional “big and complete” DuPont Chemical landscape has indeed shrunk, but the profit quality and strategic focus of the core business are expected to continue to improve. In recent years, DuPont has reshaped its asset portfolio into a “high value-added materials and technology platform”. Its core business revolves around booming markets such as electronic materials and industrial raw materials.