Dupont (NYSE: DD) has announced a definitive agreement to divest its aramids business (which includes Kevlar® and Nomex®) to Arclin, a portfolio company of an affiliate of TJC, L.P. The transaction values the business at approximately $1.8 billion, and it is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approval.
At the time of close, Dupont will receive pre-tax cash proceeds of approximately $1.2 billion, a note receivable of $300 million, and a non-controlling common equity interest in the future Arclin company currently valued at $325 million, expected to represent an approximate 17.5% stake.
The aramids business generated net sales of $1.3 billion in 2024 and has about 1,900 employees and five manufacturing sites. This divestiture is part of Dupont's ongoing optimization of its portfolio, which also includes the intended separation of its electronics business (Qnity), set for a November 1, 2025 spin-off.
The transaction is structured to maximize value for Dupont's shareholders by providing significant cash proceeds at close, which will be redeployed to further drive value creation, while also allowing Dupont shareholders to participate in Arclin’s growth potential through the retained equity interest.
The press release also mentions that Centerview Partners and Goldman Sachs & Co. LLC are serving as Dupont’s financial advisors, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel. Piper Sandler & Company is serving as financial advisor and Kirkland & Ellis LLP is serving as legal counsel to TJC/Arclin.
Arclin, the acquiring company, is a leading materials science company and manufacturer of polymer technologies, engineered products, and specialized materials for various industries. Headquartered in Alpharetta, Georgia, Arclin has offices and manufacturing facilities throughout the U.S., Canada, and the U.K., and manufactures for customers worldwide.
This divestiture further streamlines Dupont's portfolio and improves its financial profile, as stated by Lori Koch, Dupont's Chief Executive Officer. The acquisition of Kevlar® and Nomex® presents a unique opportunity for Arclin to transform its business with increased scale, broader global reach, and market-leading application development capabilities, as expressed by Bradley Bolduc, Arclin’s President and Chief Executive Officer.
Following these announcements, the company's shares moved -0.67%, and are now trading at a price of $77.11. For more information, read the company's full 8-K submission here.
