DuPont Sells Clean Technologies to Consortium
DuPont has agreed to sell its Clean Technologies business for $510 million to an international private equity consortium, comprising BroadPeak Global, Asia Green Fund and The Saudi Arabian Industrial Investments Company (Dussur).
“The international makeup of the [private equity] group will act as a strong complement to the global operations of this leading platform and we are eager to work together with our fellow consortium members to drive the business forward,” said Stephen Toy, co-founder and managing partner of US-based BroadPeak Global.
The Clean Technologies business provides advanced catalyst and process technologies to produce and regenerate sulfuric acid, hydroprocessing technology to desulfurize motor fuels, alkylation technology to produce clean gasoline and advanced air pollution control systems for refineries and chemical facilities.
The transaction is expected to close in the second quarter, subject to the usual conditions and regulatory approvals.
The sale comes as DuPont completes a review of its non-core businesses and a merger of its nutrition and biosciences unit with International Flavors & Fragrances (IFF). In connection with the IFF deal, DuPont received a special cash payment of about $7.3 billion, of which it will use roughly $5 billion to discharge some outstanding debt and strengthen its balance sheet.
Now that the IFF merger has closed, DuPont said it will move forward “with a sharpened strategic focus.” Effective from Feb. 1, the US-headquartered group will have three business reporting segments: Electronics & Industrial; Mobility & Materials; and Water & Protection. DuPont chose to keep its Tedlar polyvinyl fluoride film, microcircuit materials and the DuPont Teijin Films joint venture, realigning these businesses into Mobility & Materials.
DuPont’s executive chairman and CEO Ed Breen said the company enters 2021 in a position of strength. He commented: “DuPont today is a premier multi-industrial company, well equipped to drive organic growth and expand our businesses through select and targeted M&A. We have the right businesses, products and structure to meet the needs of our customers and capitalize on significant growth trends in our chosen end-markets.”
Author: Ellaine Burridge, Freelance Journalist
