Celanese Buys DuPont Unit for $11 Billion
Company will add Molykote lubricants, designed for oilfield use, to its slate of materials offerings.
Celanese, a global chemical and specialty materials company, has signed a definitive agreement to acquire most of the Mobility & Materials (M&M) business of DuPont for $11 billion in cash. Celanese will acquire a broad portfolio of engineered thermoplastics and elastomers, brands and intellectual property, and global production assets.
The M&M business is a global producer of engineering thermoplastics and elastomers serving a variety of end uses including automotive, oil and gas, electrical and electronics, consumer goods, and industrial applications. The acquired M&M product portfolio includes materials such as nylons (PA 66, PA 6), specialty nylons (HPPA, LCPA, filaments), polyesters (PET and PBT), and elastomers (TPC and EAE).
The main oil-and-gas related addition to the Celenese portfolio is the Molykote Specialty Lubricants. The Molykote family includes anti-seize pastes that allow for proper tightening and corrosion protection of threaded connections; synthetic lubricants for high temperatures and extreme pressures for drill bits and tool joints; oils and greases for pumps and compressors; and chemically stable silicone compounds for O-ring and valve lubrication and sealing.
Celenese will also take over the Delrin acetal homopolymer designed for high-load mechanical applications such as gears, safety restraints, door systems, and conveyor belts; and Hytrel TPC-ET thermoplastic elastomer which combines the flexibility of rubber with the strength and processability of thermoplastics and is used in automotive, air ducts, wires and cables, and seals and gaskets.
As part of the transaction, Celanese will acquire a global production network of 29 facilities, including compounding and polymerization. It will also gain an intellectual property portfolio including approximately 850 patents with associated technical and R&D assets and approximately 5,000 skilled employees across the manufacturing, technical, and commercial organizations.
The transaction, subject to regulatory approvals and customary closing conditions, is expected to close around the end of 2022.
DuPont has agreed to retain and indemnify Celanese for certain liabilities, including liabilities relating to PFAS (per- and polyfluoroalkyl substances), a group of manufactured chemicals that have been used in industry and consumer products since the 1940s, but whose long-term effects are still unknown.