DuPont (NYSE:DD) de Nemours Inc announced on Monday that it has agreed to sell 80.1% of its Delrin resins unit to private equity firm TJC, formerly known as The Jordan Company, for about $1.6 billion.
The chemicals maker is expected to receive about $1.25 billion in cash plus a note valued at $350 million upon closing, which is expected around the end of the year, and will still own a 19.9% non-controlling common equity interest in the Delrin business.
Delrin is a preferred substitute for metal parts and is used in products ranging from gear wheels to insulin pens, according to a report by Reuters.
The media outlet also noted that DuPont (NYSE:DD) has been readjusting its portfolio to focus on high-margin operations and fast-growing industries such as electric vehicles, 5G and clean energy.
"Today's announcement largely completes our planned exit of the former M&M (Mobility and Materials) segment, advancing our position as a premier multi-industrial company," said DuPont CEO Ed Breen said in a statement.
"This transaction is structured to maximize value for our shareholders, providing significant cash proceeds at close to be deployed in line with our strategic priorities while providing an opportunity for DuPont to participate in future upside potential upon exit of our retained equity interest in the Delrin business," he added.
Shares of DuPont eased $0.27 to $75.13 in late-morning trading on Monday.
Contact Sean at sean@proactiveinvestors.com