Celanese in $11bn swoop for DuPont engineering polymer units

Dallas, Texas – Celanese Corp. has signed a definitive agreement to acquire a majority of the Mobility & Materials (M&M) business of DuPont for $11.0 billion in cash. 

As part of the deal, Celanese will acquire a broad portfolio of engineered thermoplastics and elastomers, brands and intellectual property, global production assets, the Texas-based chemicals group announced 18 Feb. 

The product portfolio of the to-be-acquired business includes speciality materials such as thermoplastic copolyesters, ethylene acrylic elastomers as well as polyamides (PA 66, PA6) and polyesters.

DuPont announced in November last year that it intended to divest brands such as Zytel polyamide 66, Delrin polyacetal resins, Hytrel thermoplastic polyester elastomers, Crastin polybutylene terephthalate and Vamac ethylene acrylic elastomers. 

Furthermore, DuPont said the auto adhesives, Multibase and Tedlar product lines within the segment are not included in the scope of the intended divestitures. 

According to the terms of the agreement, Celanese will acquire a global production network of 29 facilities, including compounding and polymerisation units.

The group will also acquire customer & supplier contracts and agreements; as well as the intellectual property portfolio including approximately 850 patents with associated technical and R&D assets.

The to-be-acquired business employs 5,000 people across manufacturing, technical, and commercial organisations.

Celanese said it expects to achieve run-rate synergies of $450 million as a result of the “highly complementary fit of the businesses,” within the first four years of the purchase.

“The acquisition of the M&M business is an important strategic step forward and establishes Celanese as the preeminent global speciality materials company,” said Lori Ryerkerk, Celanese chairman and CEO.

To be integrated into Celanese’s engineered materials (EM) segment, the business has been described as “uniquely complementary” asset in terms of product, geography and end-markets.