- Complements existing offerings for biopharma and pharma processing, medical devices and packaging, including DuPont’s Liveo™ silicone solutions and Tyvek® Medical Packaging.
- Strengthens DuPont’s position in fast-growing, low cyclicality healthcare markets. Following the acquisition, approximately 10% of DuPont’s consolidated revenue will come from healthcare.
- Adds best-in-class advanced manufacturing capabilities and multi-decade customer relationships with the world’s largest medical device OEMs.
- Purchase price of $1.75 billion, $1.72 billion net purchase price after tax attributes, subject to customary transaction adjustments.
- 15.6x multiple on 2023 forecast EBITDA based on net purchase price, 13.2x including expected cost synergies of ~$20 million.
- DuPont expects the deal to be immediately accretive to its adjusted EPS and to achieve high single-digit ROIC by year five.
According to the company’s website press release on May 2, 2023, DuPont (NYSE: DD) announced that it has entered into a definitive agreement to acquire Spectrum Plastics Group (“Spectrum”) from AEA Investors. The purchase price will be paid from existing cash balances. 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 is a recognized leader in advanced manufacturing of specialty medical devices and components, serving 22 of the top 26 medical device OEMs with a strategic focus on key fast-growing therapeutic areas such as structural heart, electrophysiology, surgical robotics and cardiovascular.
Spectrum has more than 2,200 employees and has delivered consistent high single-digit growth rates for many years. With its strong financial performance, advanced manufacturing expertise, and customer-centric orientation, Spectrum is fully aligned with DuPont’s strategic objective of delivering innovative specialized materials and solutions into attractive end markets with long-term secular growth trends.
“We have been focused on Spectrum for a long time and our team is extremely excited for this opportunity,” said Ed Breen, Executive Chairman and Chief Executive Officer of DuPont. “Spectrum is a compelling strategic complement to our existing healthcare portfolio, which already includes businesses with best-in-class innovation, deep customer relationships and with strong growth and profitability. With this combination, we’ll be able to offer customers additional innovation and manufacturing capabilities with a broader and more integrated solution set.”
“Spectrum is a best-in-class company for the development and advanced manufacturing of specialty medical devices and components,” said Rahul Goyal, a Partner at AEA Investors. “Through investments in the commercial and engineering organizations and expansion of its manufacturing operations, Spectrum has enhanced its capabilities and offerings in medical end markets and achieved significant growth and increased profitability. We are proud to have supported Spectrum’s transformation for the past five years and believe DuPont is an excellent partner for Spectrum. The combination is ideally positioned to continue providing excellent customer service and highly-engineered solutions for critical healthcare applications.”
Additional information is available in a supplemental deck posted on the Events & Presentations page on DuPont’s Investor Relations website.
Advisors
Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to DuPont. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal advisor and Piper Sandler Companies served as financial advisor to Spectrum and AEA Investors.
About AEA
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives and leaders; many of whom invest with AEA as active individual investors and/or join its portfolio company boards or act in other advisory roles. Today, AEA’s approximately 110 investment professionals operate globally with offices in New York, Stamford, San Francisco, London, Munich and Shanghai. The firm manages funds that have approximately $19 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies, growth capital and mezzanine and senior debt investments.
About DuPont
DuPont (NYSE: DD) is a global innovation leader with technology-based materials and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, healthcare and worker safety. More information about the company, its businesses and solutions can be found at www.dupont.com. Investors can access information included on the Investor Relations section of the website at investors.dupont.com.
DuPont™, the DuPont Oval Logo, and all trademarks and service marks denoted with ™, SM or ® are owned by affiliates of DuPont de Nemours, Inc. unless otherwise noted.
5/2/23
For further information contact:
Media
Dan Turner
(302) 299-7628
Investor Relations
Christopher Mecray
(302) 999-2030
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