DuPont, a leading materials and chemicals maker, has agreed to sell its Delrin resins unit to The Jordan Company, a private equity firm, for about $1.8 billion, according to a statement released on Monday. The deal is expected to close by the end of the year, subject to regulatory approvals and customary closing conditions.
What is Delrin and Why is it Important?
Delrin is a brand name for a type of acetal resin, a thermoplastic polymer that has high strength, stiffness, and resistance to wear, moisture, and chemicals. It is widely used in various industries such as automotive, aerospace, medical, consumer goods, and industrial applications. Some of the products made from Delrin include gears, bearings, valves, zippers, ski bindings, and guitar picks.
Delrin is one of the core products of DuPont’s Performance Materials segment, which generated $4.5 billion in revenue in 2022. The segment also includes other specialty polymers such as Zytel nylon, Hytrel polyester elastomer, and Vespel polyimide.
Why is DuPont Selling Delrin?
The sale of Delrin is part of DuPont’s ongoing strategy to streamline its portfolio and focus on its core businesses of Electronics & Imaging, Water & Protection, and Nutrition & Biosciences. The company has been divesting non-core assets and using the proceeds to pay down debt, buy back shares, and invest in growth opportunities.
DuPont CEO Ed Breen said in the statement that the sale of Delrin “represents another step forward in advancing our strategy to grow as a global innovation leader in essential solutions that help our customers achieve their sustainability goals.”
Breen added that the deal “also unlocks significant value for our shareholders and enables us to further strengthen our balance sheet and enhance our ability to invest in our highest-return opportunities.”
Who is The Jordan Company and What are its Plans for Delrin?
The Jordan Company is a private equity firm that specializes in buying and building businesses in various sectors such as industrials, transportation, healthcare, consumer, and telecom. The firm has over $13 billion of assets under management and has offices in New York, Chicago, and Shanghai.
The Jordan Company said in the statement that it is “excited to partner with the talented Delrin team and build on the strong foundation they have established as a global leader in acetal resins.” The firm said it plans to “support the business with significant capital and operational resources to drive growth and innovation across its end markets.”
The Jordan Company’s managing partner Ian Arons said that Delrin “is an ideal fit for our portfolio given its leading market position, diversified customer base, and differentiated product offering.” Arons added that the firm “looks forward to working closely with management to execute on our shared vision for the future of the business.”