Celanese to buy majority stake in DuPont materials business for $11bn

Chemical and specialty materials company Celanese has agreed to buy a majority stake in DuPont’s mobility & materials business for $11bn in cash.

The M&M business produces engineering thermoplastics and elastomers serving a variety of end-uses including automotive, electrical and electronics, consumer goods, and industrial applications. The product portfolio being bought by Celanese includes numerous specialty materials with global leadership positions in nylons, specialty nylons, polyesters and elastomers.

As part of the deal, Celanese will buy a global production network of 29 facilities, including compounding and polymerisation; customer and supplier contracts and agreements; an intellectual property portfolio including around 850 patents with associated technical and R&D assets; and approximately 5,000 employees across the manufacturing, technical, and commercial organisations.

The transaction is expected to be immediately accretive to adjusted earnings per share, with anticipated accretion of $4.00 or more once full synergies are achieved by 2026.

Chairman and chief executive officer Lori Ryerkerk said: "The acquisition of the M&M business is an important strategic step forward and establishes Celanese as the preeminent global specialty materials company.

"For nearly a decade, we have implemented, enhanced, and increasingly extended the Engineered Materials (“EM”) commercial model to generate shareholder value. M&M will be a high-quality addition to EM and will unlock significant opportunities to generate further customer and shareholder value. We are eager to welcome the M&M team to Celanese and jointly elevate the future growth and cash generation of the combined Celanese portfolio."