Big news in the chemical world! DuPont just announced a massive $1.8 billion deal, selling its renowned Aramids business (hello, Kevlar and Nomex!) to Arclin. This strategic move is shaking up portfolios and setting the stage for significant market shifts. What does this mean for the future of high-performance materials?
In a significant corporate maneuver poised to reshape the advanced materials landscape, DuPont has announced a definitive agreement to divest its venerable Aramids business, which includes the iconic Kevlar® and Nomex® brands, to Arclin. This transaction, valued at approximately $1.8 billion, marks a strategic step for both companies, allowing DuPont to further optimize its portfolio while significantly enhancing Arclin’s market presence in high-performance synthetic fibers.
The intricate deal structure is designed to maximize shareholder value for DuPont, providing a multi-faceted return. At the close of the transaction, anticipated in the first quarter of 2026 pending customary closing conditions and regulatory approvals, DuPont is set to receive pre-tax cash proceeds of approximately $1.2 billion. Additionally, the company will secure a $300 million note receivable and retain a non-controlling common equity interest in the future Arclin entity, valued at $325 million, which is expected to represent an approximate 17.5% stake.
Lori Koch, DuPont’s Chief Executive Officer, underscored the strategic rationale behind the Aramids divestiture, stating that it represents “another important step in our continued optimization of the new DuPont portfolio.” Koch emphasized that the transaction not only enhances the strategic focus of their core businesses but also promises to improve the company’s growth and margin profile. The retained equity interest ensures DuPont shareholders can participate in Arclin’s future growth potential, reflecting a forward-thinking approach to value creation.
From Arclin’s perspective, led by President and CEO Bradley Bolduc, the acquisition of Kevlar® and Nomex® is a transformative opportunity. Bolduc expressed excitement about partnering with TJC, L.P., and highlighted the unique chance to achieve increased scale, broader global reach, and enhanced market-leading application development capabilities. This expansion is expected to bolster Arclin’s commitment to delivering impactful solutions and products, such as Arclin Firepoint, which are critical for protecting essential assets and people.
The Aramids business itself is a global leader, renowned as the inventor and largest producer of industry-leading high-performance synthetic fibers. Its products, Kevlar® and Nomex®, are globally recognized brands with an enduring reputation for exceptional quality, reliable product performance, and robust supply chains. These advanced materials are indispensable in high-cost-of-failure applications, providing crucial protection for individuals, equipment, and structures across various sectors.
Financially, the Aramids business demonstrated substantial performance, generating net sales of $1.3 billion in 2024. With approximately 1,900 dedicated employees and five strategically located manufacturing sites, the business has been a significant contributor to the advanced materials sector. Its integration into Arclin’s portfolio is expected to create a formidable entity with expanded capabilities and market reach.
Notably, this Aramids divestiture operates independently and will not affect DuPont’s previously announced separation of its electronics business, Qnity, which remains on track for a spin-off by November 1, 2025. Financial advisory services for DuPont were provided by Centerview Partners and Goldman Sachs & Co. LLC, with legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP. Moelis & Company advised TJC/Arclin, with Kirkland & Ellis LLP serving as their legal counsel.
Arclin, a prominent materials science company, specializes in manufacturing polymer technologies, engineered products, and specialized materials crucial for diverse industries including construction, agriculture, transportation infrastructure, and electronics. Headquartered in North Carolina, Arclin maintains a global footprint with offices and manufacturing facilities across the U.S., Canada, and the U.K., serving a worldwide customer base.
TJC, L.P., formerly known as The Jordan Company, boasts over four decades of experience collaborating with CEOs and entrepreneurs across a broad spectrum of industries, including diversified industrials and industrial technology. With a substantial portfolio of assets under management, TJC’s operational focus and proven track record of value creation position it as a strategic partner in this significant acquisition, further solidifying its presence in the global market alongside DuPont’s ongoing commitment to innovation.
