M&As: DuPont divests Kevlar aramids business to Arclin for US$1.8 bn; Covestro buys Swiss adhesive films maker Pontacol

US-based DuPont has announced that Arclin, a portfolio company of an affiliate of TJC LP, has reached a definitive agreement to acquire DuPont’s Aramids business (Kevlar and Nomex) in a transaction valuing the business at approximately US$1.8 billion.

Arclin has received fully committed financing in connection with the transaction, which is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approval.

At close, DuPont will receive pre-tax cash proceeds of approximately US$1.2 billion, subject to customary transaction adjustments, a note receivable of US$300 million, and a non-controlling common equity interest in the future Arclin company currently valued at US$325 million, which is expected to represent an approximate 17.5% stake at the time of close.

“Today's announcement is another important step in our continued optimization of the new DuPont portfolio,” said Lori Koch, DuPont CEO. “The Aramids transaction further enhances the strategic focus of our portfolio, while also increasing the growth and margin profile. The transaction is structured to maximiSe value for our shareholders by providing significant cash proceeds at close which will be re-deployed to further drive value creation, while also allowing DuPont shareholders to participate in Arclin’s growth potential through our retained equity interest,” continued Koch.

The Aramids business is the inventor and largest global producer of high performance synthetic fibres that protect people, equipment and structures in high cost-of-failure applications. Aramids’ synthetic fibres, Kevlarand Nomex, are well-known brands globally. With about 1,900 employees and five manufacturing sites, the Aramids business generated net sales of US$1.3 billion in 2024.

The Aramids divestiture will not impact DuPont’s intended separation of its electronics business (Qnity), which remains on track for a November 1, 2025 spin-off.

Based in Georgia, US, Arclin is a materials science company and manufacturer of polymer technologies, engineered products and specialised materials for the construction, agriculture, transportation infrastructure, weather & fire protection, pharmaceutical, nutrition, electronics, design, and other industries. It has manufacturing facilities throughout the US, Canada, and UK. 

In other news, German materials firm Covestro says it has successfully completed the acquisition of Pontacol, a Swiss manufacturer of multilayer adhesive films. The company had already announced the agreement in June 2025.

Both parties have agreed not to disclose the purchase price.

With this acquisition, Covestro adds it is expanding its films business to include specialised flat and blown films. These products strategically complement the existing portfolio and open up new growth opportunities – particularly in key future markets such as medical technology, mobility, and the textile industry, where global demand for functional films continues to rise.

As part of the transaction, two specialised production sites in Switzerland and Germany will transfer to Covestro. These facilities strengthen both the company’s global manufacturing network and the regional availability of adhesive films. In addition, complementary technologies, new customer relationships, and an expanded product portfolio create further value-creation potential.

The financing will be through cash and is thus aligned with Covestro’s goal of maintaining a solid investment-grade rating. 

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