DuPont announced on November 2 that it would acquire electronic materials manufacturer Rogers for US$5.2 billion and plans to sell most of its engineering plastics business.
Peter Rogers (Peter Rogers) founded Rogers Corporation in 1832. As one of the oldest listed companies in the United States, Rogers has now developed into the world's leading supplier of special materials, covering many high-tech equipment and systems. The material field is in a leading position in the world. It is expected that sales in 2021 will reach approximately US$950 million and employ 3,500 employees in 14 manufacturing sites in North America, Europe and Asia.
Rogers completed the acquisition of ArlonBairnco, a world-renowned manufacturer of high-frequency communication materials, in January 2015, and owns 100% of its shares. Yalong is in a leading position in the field of microwave/RF substrates in high-frequency communication materials. Its AD-C series products have become the leader of PCB substrates for base station antennas, and the leading substrate products are mainly for the high-end antenna market. The completion of the acquisition of Yalong has greatly enhanced Rogers' market competitiveness in the field of high-frequency communication materials.
In recent years, Rogers' performance has also improved year by year. Recent financial reports show that the company's net profit attributable to ordinary shareholders of the parent company for the second fiscal quarter of 2021 was US$28.65 million, a year-on-year increase of 97.35%; operating income was US$235 million, a year-on-year increase of 22.89%. Regarding the growth in performance, Rogers said that throughout the pandemic, the company continued to make major investments and achieved good results.
DuPont said that the enterprise value multiple of the transaction is approximately 19 times the estimated EBITDA in 2022, and the acquisition is expected to be completed in the second quarter of 2022.
In March of this year, DuPont announced the acquisition of electronic materials company Laird Performance Materials for US$2.3 billion. The transaction was completed in early July.
DuPont said that the two acquisitions will enable it to have more opportunities in the electronics and industrial sectors with a market value of more than US$40 billion, and strengthen its position in electric vehicles, advanced driver assistance systems, 5G telecommunications and clean energy.
On the same day, DuPont also announced plans to divest the mobile and materials divisions, mainly the engineering polymers and high-performance resin business lines, as well as DuPont's shares in the DuPont Teijin film joint venture. The total revenue of these businesses in 2021 is approximately US$4.2 billion, and the EBITDA is approximately US$1 billion.
The product line for sale includes nylon, polyacetal, thermoplastic polyester and elastomers, ethylene acrylic elastomers, some polyvinyl fluoride materials, and special thick film and ceramic tapes for microcircuit materials.
DuPont said these measures will strengthen DuPont's position in a high-growth, high-margin market. DuPont will pay more attention to industries with long-term stable growth trends. "Looking forward, our product portfolio will focus on key pillar industries-electronics, water, protection, industrial technology and next-generation automobiles."
DuPont announced its financial report on the same day, showing that its third-quarter net profit was US$391 million, compared with a net loss of US$79 million in the same period last year. Operating profit before interest, taxes, depreciation, and amortization (EBITDA) was US$1.09 billion, a year-on-year increase. 20%. Net sales increased by 18% to US$4.3 billion.