Materials giant Dupont is to acquire Rogers in a $5.2bn deal with significant restructuring to focus on electronics, electric vehicles, advanced driver assistance systems (ADAS), 5G telecommunications and clean energy.
Rogers has a leading positions in high-frequency circuit materials, ceramic substrates for power semiconductor devices, and high-performance foams.
The deal is expected to close in the second quarter of 2022 and will be followed by Dupont, which had a turnoer of $20.4bn in 2020, spinning out most of its Mobility & Materials business.
"Moving forward, our portfolio will be centred on key pillars – electronics, water, protection, industrial technologies and next generation automotive,” said Ed Breen, Executive Chairman and Chief Executive Officer of DuPont. "Building on our recent acquisition of Laird Performance Materials, the acquisition of Rogers further cements our position as the leading electronic solutions provider in the industry.”
“We are committed to investing in each of these pillars organically and through strategic acquisitions to maximize our capabilities in areas that enable our customers to grow by delivering next generation technologies and sustainable high value-added solutions,” he said. “These strategic steps are expected to create tremendous opportunities for DuPont and Rogers employees and unlock significant value for shareholders."
Rogers is headquartered in Chandler, Arizona, with a workforce of 3,500 employees across 14 manufacturing sites in North America, Europe, and Asia. It has expected revenues of $950m in 2021.
“We are building an unmatched portfolio that is ideally positioned to capitalize on rapid demand acceleration in high-growth markets, including electric vehicles, ADAS, 5G telecommunications and clean energy,” said Breen. “With industry-leading positions in each of its product categories, a proven history of application engineering excellence and deep customer relationships, Rogers is highly complementary to and aligned strategically with our existing Electronics & Industrial business and is expected to deliver compelling returns over the near and long-term."
"DuPont is a natural fit for Rogers, as a leading advanced materials solutions provider," said Bruce D. Hoechner, President and CEO of Rogers. "DuPont is a proven leader in advanced specialty materials, and Rogers will benefit from DuPont's global reach and strong technical and commercial depth. Like DuPont, Rogers' success is built upon a dedicated team of people committed to excellence and technology leadership to solve our customers' most complex application challenges. This combination will create an exciting next chapter for Rogers' customers, employees and partners."
DuPont expects to see annual savings of $115m by the end of 2023 through the deal.
DuPont also intends to divest its Engineering Polymers and Performance Resins businesses as well as the stake in the DuPont Teijin Films joint venture. This will include brands such as Zytel, Delrin, Hytrel, Crastin, Vamac and TEDLAR that represent $4.2bn in revenue and $1.0bn of operating profits.
"Finding an ownership model that appropriately values the leadership positions and deep customer value proposition of the in-scope Mobility & Materials portfolio will position the business for continued success, leveraging its unmatched combination of products, technologies, and operating expertise for the benefits of its employees and customers," said Breen. "Through unprecedented challenges in the past 18 months, these teams have proven that their unwavering commitment to deliver for their customers, employees and partners has generated solid results and I am confident they are well equipped to expand their leadership positions under new ownership."
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