Dupont (NYSE: DD) has just announced a definitive agreement to divest its aramids business, including Kevlar® and Nomex®, to Arclin in a transaction valued at approximately $1.8 billion. The transaction is expected to close in the first quarter of 2026. Upon closing, 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 at the time of close.
In 2024, the aramids business generated net sales of $1.3 billion. The business has about 1,900 employees and five manufacturing sites. This divestiture is part of Dupont's strategic optimization of its portfolio, aiming to streamline and improve its financial profile. The intended separation of its electronics business (Qnity) remains on track for a November 1, 2025 spin-off.
This transaction is structured to maximize shareholder value by providing significant cash proceeds at close, which will be redeployed to further drive value creation. Additionally, Dupont shareholders will retain an equity interest in the future Arclin company, allowing them to participate in its growth potential.
The financial advisors for this transaction are Centerview Partners and Goldman Sachs & Co. LLC for Dupont, and Piper Sandler & Company for TJC/Arclin. Legal counsel is being provided by Skadden, Arps, Slate, Meagher & Flom LLP for Dupont, and Kirkland & Ellis LLP for TJC/Arclin.
As a result of this transaction, Arclin, a leading materials science company, is set to expand its portfolio with the addition of Kevlar® and Nomex®. This move presents an opportunity for Arclin to transform its business with increased scale, broader global reach, and market-leading application development capabilities. The market has reacted to these announcements by moving the company's shares -0.26% to a price of $77.63. For more information, read the company's full 8-K submission here.
