FILE PHOTO: A logo is pictured outside of Dupont offices in Geneva, Switzerland, April 15, 2021. REUTERS/Denis Balibouse/File Photo
November 2, 2021
(Reuters) -DuPont de Nemours Inc has agreed to buy engineering materials maker Rogers Corp for $5.2 billion, doubling down on efforts to fortify its presence in fast-growing markets such as electric vehicles, 5G and clean energy.
The company also said on Tuesday it plans to sell a substantial portion of its mobility & materials segment, primarily in the engineering polymers and performance resins lines of business, as well as its stake in the DuPont Teijin Films joint venture.
Combined, these businesses represent about $4.2 billion in annual revenue, Dupont said.
The Rogers deal will build on DuPont’s $2.3 billion buyout of Laird Performance Materials in July to bolster its advanced electronic materials portfolio.
Rogers shareholders will get $277 in cash per share held, a 33% premium to the stock’s last close. Shares of Rogers were up 29.52% in premarket trading, while DuPont’s stock was down 3.7% at $68.58.
DuPont estimated pre-tax run rate cost savings of about $115 million by the end of 2023 from the deal.
The company expects the deal to add to revenue, cash flow and profit growth after close, likely in the second quarter of 2022.
DuPont also beat third-quarter revenue and profit estimates, as strong demand and pricing gains helped offset higher raw material costs.
The company posted sales of $4.3 billion and profit of $1.15 per share, compared with estimates for sales of $4.1 billion and profit of $1.12 per share, according to Refinitiv IBES data.
However, DuPont cut its full-year sales and profit forecasts, after having raised them twice so far, citing slowing orders in automotive markets due to a global chip shortage.
The company estimated net sales of between $16.34 billion and $16.40 billion, and adjusted earnings of $4.18 to $4.22 per share. This compares with earlier expectations for sales of $16.45 billion and $16.55 billion and per share earnings of $4.24 to $4.30.
