WILMINGTON, DE – DuPont has entered into a definitive agreement with private equity firm Advent International to acquire Laird Performance Materials for $2.3 billion, which will be paid from existing cash balances.
The transaction is expected to close in the third quarter, subject to regulatory approvals and other customary closing conditions.
Laird Performance Materials provides high-performance electromagnetic shielding and thermal management, as well as performance components and solutions that manage heat and protect devices from electromagnetic interference.
Laird 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 $465 million.
The transaction brings together DuPont’s films, laminates, and plating chemistry with Laird’s electromagnetic shielding and thermal management solutions.
“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,” said Ed Breen, executive chairman and CEO of DuPont. “Laird Performance Materials is a strategic and complementary addition to the electronics and industrial 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. We look forward to welcoming Laird Performance Materials’ highly talented teams. With an expanded global reach and proven operational and technical capabilities, I’m confident the combined E&I team will deliver compelling revenue synergies and further accelerate our journey toward becoming a faster-growing and more profitable company.”
“Laird Performance Materials is an outstanding business,” said Shonnel Malani, managing director at Advent International. “Following a strategic refocus and investment in the company’s product offerings and talent, the business has achieved strong growth. We believe DuPont will be an excellent partner for Laird Performance Materials. The combined organization will be ideally placed to provide customers with a unique and broad range of comprehensive and innovative solutions.”
DuPont expects to realize approximately $60 million in pre-tax run-rate cost synergies by the end of 2024, with the majority realized in the first 18 months post-closing. The estimated one-time cost to achieve these synergies is approximately $40 million. After adjusting for one-time costs and deal-related amortization, DuPont expects the deal to be accretive to its operating EBITDA margins, free cash flow, and adjusted EPS within the first 12 months and to achieve high single-digit ROIC by year five. The enterprise value multiple of the transaction is approximately 15x estimated 2021 EBITDA on a standalone basis and approximately 11x including cost synergies.
“This transaction represents another strategic step forward in sharpening our focus and directing our investments toward high-value, high-growth opportunities. We remain committed to a balanced capital allocation policy that delivers strong returns to shareholders and includes organic growth, targeted M&A, and shareholder remuneration,” said Breen.
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