DuPont on November 2nd said it has signed a definitive agreement to acquire electronics materials specialist Rogers Corporation for $5.2 billion.
With this acquisition, Dupont said it will expand its leading position in high growth markets such as electric vehicles, advanced driver assistance systems (ADAS), 5G telecommunications and clean energy.
The acquisition is expected to close in the second quarter of 2022, according to a DuPont press release.
DuPont also announced that it intends to divest a substantial portion of its mobility and materials business to focus on “high-growth, high-value opportunities in sectors with steady long-term secular growth trends.”
The company will be focused on electronics, water, protection, industrial technologies and next generation automotive, Breen said in a statement.
DuPont intends to sell parts of its engineering polymers and performance resins business lines as well as the company’s stake in the DuPont Teijin Films joint venture.
Those lines include products such as Zytel, Delrin, Hytrel, Crastin, Vamac and TEDLAR, which combine to represent about $4.2 billion in revenue and about $1 billion in earnings before interest, taxes and depreciation, according to DuPont.
DuPont said it anticipates a three to six-month process to market these businesses. Here, it is eyeing the 2022 fourth quarter to wrap up the divestments. Along with paying for part of the Rogers acquisition, proceeds from the asset sale are planned to be used for other M&A transactions and to maintain a balanced capital allocation.
“With today’s 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 DuPont CEO and executive chairman Ed Breen.
Building on the recent acquisition of Laird Performance Materials for $2.3 billion this past July, Breen said the acquisition of Rogers “further cements our position as the leading electronic solutions provider in the industry.” He added that that DuPont’s management “is committed to investing in each of these pillars organically and through strategic acquisitions to maximize capabilities. “
Based in Chandler, Arizona, Rogers designs, develops, manufactures and sells high-performance and high-reliability engineered materials and components through its Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS) segments. With a workforce of more than 3,500 and a global network of 14 manufacturing sites in North America, Europe and Asia, the company expects sales revenue of $950 million this year.