On Aug. 21, Wilmington, Delaware-based global chemical company DuPont announced that it has agreed to sell an 80.1% ownership interest in the Delrin acetal homopolymer (H-POM) business to private equity firm TJC LP (TJC) for $1.8 billion.

The transaction, which is expected to close around the end of 2023, is subject to customary closing conditions and regulatory approval. When the deal closes, DuPont will receive pre-tax cash proceeds of approximately $1.25 billion, subject to customary transaction adjustments, a note receivable of $350 million, and will own a 19.9% non-controlling common equity interest in the Delrin business.

DuPont’s Delrin unit makes material used for high-load mechanical applications like gears, safety restraints, door systems, conveyor belts, healthcare delivery devices and other demanding products and parts.

“Today’s announcement largely completes our planned exit of the former M&M segment, advancing our position as a premier multi-industrial company,” said Ed Breen, DuPont Executive Chairman and CEO. “This transaction is structured to maximize value for our shareholders, providing significant cash proceeds at close to be deployed in line with our strategic priorities while providing an opportunity for DuPont to participate in future upside potential upon exit of our retained equity interest in the Delrin business.”

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The majority of DuPont’s divestment in its Delrin segment happened via a 2022 deal that was completed last November for $11 billion. Delrin operations results will continue to be presented as “discontinued operations” in DuPont’s consolidated financial statements through transaction closing, the company said.

“Delrin is widely recognized as the material of choice for safety critical and high cost-of-failure applications across diverse end markets,” said Ian Arons, TJC Partner. “For over 60 years the Delrin business has leveraged its differentiated technologies and global manufacturing presence to provide its customers high quality, innovative solutions. We are thrilled to have DuPont as a partner, and we look forward to working closely with the entire Delrin team to drive future growth in the business.”