DuPont Sheds Most of Its Mobility & Materials Business

Chemical and specialty materials manufacturer Celanese entered into a definitive agreement to purchase most of DuPont’s Mobility & Materials (M&M) business in an $11 billion cash transaction, a company release announced Friday.

Under the terms of the deal, Celanese will take on global production assets and intellectual property related to the business, as well as a portfolio of engineered thermoplastics and elastomers.

“The acquisition of the M&M business is an important strategic step forward and establishes Celanese as the preeminent global specialty materials company,” Lori Ryerkerk, the chief executive officer and chairman of Celanese, said in a statement. The executive added, “M&M will be a high-quality addition to EM and will unlock significant opportunities to generate further customer and shareholder value.”

Products in the M&M portfolio are used in electrical and electronics, consumer goods, and industrial applications. The acquisition increases Celanese’s position in nylons (PA 66, PA 6), specialty nylons (HPPA, LCPA, filaments), polyesters (PET and PBT), and elastomers (TPC and EAE).

The deal includes a production network of 27 facilities, including compounding and polymerization plants and customer and supplier contracts and agreements. Some 5,000 employees currently employed in the M&M business are expected to join Celanese.

“The M&M business is a uniquely complementary specialty materials asset to EM, spanning product, geography, and end-market,” said Tom Kelly, senior vice president, Engineered Materials at Celanese, in the release. “This acquisition greatly enhances the EM product. Portfolio by adding new polymers, industry-renowned brands, leading product technology, and backward integration in critical polymers. We are eager to combine the product and technology leadership of M&M with the commercial excellence and customer engagement model of EM to accelerate our growth in high-value applications including future mobility, connectivity, and medical.

Celanese expects the transaction to close by the end of this year.