DuPont announced that it would acquire Laird Performance Materials for $2.3 billion from private equity firm Advent International, as it looks to expand its portfolio of advanced electronic materials.
The deal is one of several recent investments by chemical makers seeking to tap into growth in the electronics industry.
Laird makes chemicals and materials that manage heat and provide electromagnetic shielding for electronic devices. It employs 4,300 people at 11 sites around the world and reported 2020 sales of $465 million. It will become part of DuPont’s electronics and industrial division, one of three divisions at the slimmed-down firm.
DuPont will buy Laird from the private equity firm Advent International using cash it has on hand. In January, DuPont completed the sale of its nutrition and biosciences business to International Flavors & Fragrances for $7.3 billion. At the time, it said it would use part of the proceeds to retire $5 billion in debt, and invest the rest.
DuPont cites autonomous vehicles, 5G wireless, artificial intelligence, the internet of things, and high-performance computing as key drivers for the industry.
Sales in DuPont’s electronics and imaging business rose 9% to $1.02 billion in the fourth quarter from a year earlier.
The company said in February its plans to spend up to $2.5 billion of its $5 billion to $6 billion expected cash on mergers and acquisitions.