DuPont to buy Laird Performance Materials from Advent for $2.3bn
DuPont has agreed to buy Laird Performance Materials from private equity firm Advent International for $2.3bn in cash.
Laird is "a world leader in high-performance electromagnetic shielding and thermal management", DuPont said, with a comprehensive offering of performance components and solutions that manage heat and protect devices from electromagnetic interference.
It has a workforce of more than 4,300 employees with a global network of 11 manufacturing sites in North America, Europe, and Asia and 2020 revenues of $465m.
DuPont said Laird has consistently delivered high single-digit growth rates and highly attractive gross and adjusted EBITDA margins of around 50% and 30%, respectively.
The company expects to realise around $60m in pre-tax run-rate cost synergies by the end of 2024 with the majority realised in the first 18 months post-closing. The estimated one-time cost to achieve these synergies is approximately $40m.
DuPont executive chairman and chief executive Ed Breen said: "The acquisition of Laird Performance Materials is a significant step in advancing DuPont's strategy to grow as a global innovation leader and premier multi-industrial company.
"Laird Performance Materials is a strategic and complementary addition to the Electronics & Industrial (E&I) business, and our applied material science expertise together with Laird Performance Materials' industry-leading application engineering capabilities further strengthens DuPont as an essential partner for major electronics OEMs and manufacturers."
The transaction is expected to close in the third, subject to regulatory approvals and other customary closing conditions.