DuPont To Divest Around 80% Ownership In Delrin To TJC

(RTTNews) - DuPont de Nemours, Inc. (DD), a technology-based materials and solutions provider, on Monday announced a definitive agreement to sell 80.1 percent of its stake in Delrin acetal homopolymer business to TJC LP, a private equity firm.

The transaction values the Delrin business at $1.8 billion.

The transaction is expected to close around the year end, subject to customary closing conditions and regulatory approval.

Upon closing of the deal, DuPont will receive pre-tax cash proceeds of approximately $1.25 billion, a note receivable of $350 million and will own 19.9% non-controlling common equity interest in the Delrin business.

Delrin business will continue to be presented as discontinued operations in DuPont's financial statements through transaction closing.

"Today's announcement largely completes our planned exit of the former M&M segment, advancing our position as a premier multi-industrial company," said Ed Breen, DuPont Executive Chairman and Chief Executive Officer.

TJC has received fully committed financing in regard to the deal.

Goldman Sachs is DuPont's financial advisor Skadden, Arps, Slate, Meagher & Flom LLP is their legal counsel. Citi is the financial advisor for TJC and Kirkland & Ellis LLP is its legal counsel.

In pre-market activity, shares of DuPont are trading at $76.23 up 1.10% on the New York Stock exchange.