DuPont, the renowned materials manufacturer, has officially announced the sale of an 80.1% ownership interest in Delrin, an acetal homopolymer business. The buyer is the private-equity firm TJC LP. The deal, estimated at a value of $1.8 billion, is anticipated to conclude by the end of 2023, as stated in a press release.
Upon the completion of the transaction, DuPont is set to receive approximately $1.25 billion in pretax cash proceeds, subject to customary transaction adjustments. Additionally, they will hold a note receivable of $350 million. However, DuPont will retain a noncontrolling equity stake of 19.9% in the Delrin business.
CEO Ed Breen emphasized that this transaction aims to optimize value for shareholders, offering substantial cash proceeds to be utilized according to the company's strategic priorities. Furthermore, by retaining a stake in Delrin, DuPont also has the potential to benefit from future growth opportunities.
In response to this news, shares of DuPont (ticker: DD) experienced a 1.4% increase in premarket trading. So far this year, the company's stock has seen a solid climb of 9.9%.
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