DuPont agrees deal with Advent International to acquire Laird Performance Materials.

On 8^th March 2021, DuPont announced that it has agreed a deal with Advent International to acquire Laird Performance Materials in a deal worth USD 2.3 billion. Advent International is one of the world’s largest equity firms. The transaction is expected to be closed by the third quarter of 2021, subject to regulatory approvals. 

Earlier this year, DuPont signaled that it was done shedding its businesses. As part of several investments made by chemical giants in order to tap the potential of electronic chemicals industry, DuPont is acquiring Laird Performance Materials.

Laird Performance Material is a world leader in chemical and materials that manage heat and provide electromagnetic shielding for electronic devices. It also has a comprehensive offering portfolio of performance components and solutions. Laird employs more than 4,300 employees across 11 manufacturing sites in North America, Europe, and Asia. It posted annual revenue of USD 465 million in 2020. After the acquisition, Laird will become part of DuPont’s electronics and industrial division, one of the three divisions at the company.

DuPont will pay for the acquisition deal with cash in hand. In order to slim down its business and pay the remaining debt, DuPont completed the sale of its nutrition and bioscience business to International Flavors & Fragrances for USD 7.3 billion. DuPont used this sum to pay its debts amounting nearly USD 5 billion and reinvest the remaining sum.

Ed Breen, Executive Chairman and Chief Executive Officer of DuPont, said, “The acquisition of Laird Performance Materials is a significant step in advancing DuPont's strategy to grow as a global innovation leader and premier multi-industrial company. Laird Performance Materials is a strategic and complementary addition to the Electronics & Industrial (E&I) business, and our applied material science expertise together with Laird Performance Materials' industry-leading application engineering capabilities further strengthens DuPont as an essential partner for major electronics OEMs and manufacturers.”

DuPont’s decision to invest in electronic chemical is a smart move. Electronic chemicals market has seen rapid growth in recent times with almost two-third of the demand coming from semiconductors and the rest from displays. According to DuPont, autonomous vehicles, 5G wireless, artificial intelligence, the internet of things, and high-performance computing are some of the major drivers for the electronic chemicals industry.

Apart from DuPont, LCY Chemicals recently announced that it is working towards building an electronics-grade isopropyl alcohol plant in Arizona to support its customers like Taiwan Semiconductor Manufacturing Co., who is planning to build a chip plant in Phoenix with an investment of USD 12 billion.