DuPont Nears Big Acquisition

DuPont de Nemours will make an acquisition that will revamp the chemicals company. According to analysts, DuPont will announce the acquisition of Rogers Corp., an electronics-materials specialist with a market value of nearly $4 billion.

Observers expect DuPont to make an announcement during tomorrow's third quarter earnings call.

DuPont, which has a market value of around $37 billion, has three divisions: electronics and industrials, mobility and materials, and water and protection. The electronics and industrials unit, which would be combined with Rogers, accounted for roughly one-third of the company’s $4.1 billion of net sales in the most recent quarter. The mobility and materials unit, which plans to consider options such as a sale or spinoff, also accounts for roughly one-third of the company’s net sales.

DuPont Inc. was formed by the merger of Dow and DuPont in 2015. DowDuPont’s materials-science business is now Dow Inc. and its agriculture operation is Corteva Inc. But the moves failed to generate growth and the company brought back Edward D. Breen who orchestrated the split six years ago. 

To get the company growing again, earlier this year, DuPont closed a deal to combine its nutritional business with International Flavors & Fragrances. The move created a major ingredient supplier in the food ingredient business.