2023 - 2024 Exhibitions
M&As: DuPont to buy Spectrum Plastics in US$1.7 bn deal
US materials firm DuPont has agreed to acquire Spectrum Plastics Group from private investment firm AEA Investors for US$1.75 billion in cash. Previously, DuPont had been hot on the heels of acquiring Rogers Corp, which did not materialise, and has now settled for a smaller deal for a specialty plastics manufacturer that focuses on the growing biopharmaceutical market.
The transaction is expected to close by the end of the third quarter of 2023, subject to regulatory approvals and other customary closing conditions.
Spectrum Plastics is a manufacturer of speciality medical devices and components, serving 22 of the 26 top medical device original equipment manufacturers with a focus on fast-growing therapeutics areas such as structural heart, electrophysiology, surgical robotics and cardiovascular.
Spectrum, which produces a variety of tubing, catheters, balloons, laser processing, injection moulding and packaging films, has more than 2,200 employees and has delivered consistent high single-digit growth rates for many years, according to DuPont.
DuPont said it expects the deal will be immediately accretive to its adjusted earnings and achieve high single-digit return on investment capital by year five. It also adds that Spectrum complements existing offerings for biopharma and pharma processing, medical devices and packaging, including DuPont's Liveo silicone solutions and Tyvek medical packaging.
The company said Spectrum Plastics will strengthen its position in fast-growing, low cyclicality healthcare markets; following the acquisition, around10% of DuPont's consolidated revenue will come from healthcare.
(PRA)
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