DuPont Sells Aramids Division for $1.8 Billion to Refine Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
DuPont's Sale of Aramids Business
- Transaction Details: DuPont de Nemours, Inc. has agreed to sell its Aramids business, which includes the Kevlar and Nomex brands, to Arclin for approximately $1.8 billion. The deal is expected to close in the first quarter of 2026, pending regulatory approvals.
- Financial Breakdown: Upon closing, DuPont will receive around $1.2 billion in cash before taxes, a $300 million note, and a 17.5% equity stake in the future Arclin business.
Strategic Implications
- CEO's Statement: Lori Koch, DuPont’s CEO, stated that this divestiture aligns with the company's strategy to refine its portfolio and enhance profitability. The deal is anticipated to provide significant cash for reinvestment and allow shareholders to benefit from Arclin’s growth.
- Impact on Workforce and Revenue: The Aramids division employs about 1,900 people and generated $1.3 billion in revenue in 2024. DuPont confirmed that this sale will not affect the planned spinoff of its electronics unit, Qnity, scheduled for November 1, 2025.
Market Context
- Company Outlook: Earlier this month, DuPont raised its outlook due to strong demand across various end markets, indicating a shift towards higher-growth segments.
- Advisors Involved: Centerview Partners and Goldman Sachs advised DuPont on the transaction, while Skadden, Arps, Slate, Meagher & Flom provided legal counsel. Arclin and TJC were advised by Piper Sandler and Kirkland & Ellis.
Stock Performance
- Current Trading Status: DuPont's shares were trading down by 0.35% to $77.36 in premarket trading at the last check on Friday. Investors are also monitoring related ETFs, including the Materials Select Sector SPDR Fund (XLB) and the iShares U.S. Basic Materials ETF (IYM).
Analyst Views on CC
Wall Street analysts forecast CC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CC is 16.14 USD with a low forecast of 13.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 16.190
Low
13.00
Averages
16.14
High
19.00
Current: 16.190
Low
13.00
Averages
16.14
High
19.00
About CC
The Chemours Company provides industrial and specialty chemical products for markets, including coatings, plastics, refrigeration and air conditioning, transportation, semiconductor and advanced electronics, general industrial, and oil and gas. The Company’s segments include Titanium Technologies, Thermal & Specialized Solutions and Advanced Performance Materials. The Titanium Technologies segment is a provider of titanium dioxide pigment, a premium white pigment used to deliver whiteness, brightness, opacity and protection in various applications. The Thermal & Specialized Solutions segment is a provider of refrigerants, thermal management solutions, propellants, blowing agents, and specialty solvents. The Advanced Performance Materials segment is a provider of high-end polymers and advanced materials. Its flagship products include brands such as Opteon, Freon, Ti-Pure, Nafion, Teflon, Viton, and Krytox. The Company serves over 2,700 customers in approximately 110 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
