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DuPont weighs sale of transportation and industrial unit: Bloomberg
Posted on Friday, 08 November 2019 12:57
DuPont de Nemours, which split from chemicals giant DowDuPont earlier this year, is looking into a disposal of its transportation and industrials business, people closed to the matter told Bloomberg.
According to these sources, the company is working with advisors on a strategic review for the division, with a sale being explored as an option.
Should this be the preferred outcome, the insiders, who asked not to be identified as the situation is still private, suggested Celanese may be interested in buying the assets as it already has complementary operations in the market and is in the middle of weighing alternatives to boost shareholder value itself.
The transportation and industrials business supplies materials for the aerospace, automotive, consumer, electronics and healthcare sectors.
It is DuPont’s third-largest segment in terms of net sales, generating USD 3.80 billion in the nine months to 30th September 2019, down 8.4 per cent from USD 4.15 billion in the corresponding period of 2018.
This represents 23.3 per cent of total sales at the company (Q1-3 2019: USD 16.31 billion) and follows the nutrition and biosciences unit (Q1-3 2019: USD 4.62 billion) and the safety and construction division (Q1-3 2019: USD 3.95 billion).
DuPont, according to another Bloomberg report in August, was also weighing a sale of the nutrition and biosciences unit, with Koninklijke KSM considering making a bid of USD 25.00 billion.
Shares in the group rose 1.4 per cent in after-hours trading to USD 72.60 at 19:23 yesterday, giving the business a market capitalisation of USD 53.38 billion.
DowDuPont broke up earlier this year after being formed in 2017 in a deal worth USD 61.70 billion, which was the largest transaction completed globally in this entire 12-month period, according to Zephyr, the M&A database published by Bureau van Dijk.
This tie up is still the biggest deal within the chemical manufacturing sector signed off since 2015 until the current date.
© Zephus Ltd