Market Updates
DuPont to Acquire Spectrum Plastics for $1.75 B
Scott Peters
02 May, 2023
New York City
DuPont announced the acquisition of Spectrum Plastics Group for $1.75 billion from AEA Investors.
The net purchase price after-tax is estimated at $1.72 billion.
The net purchase price is 15.6 times of 2023 forecasted EBITDA and 13.2 times including expected $20 million of cost synergies.
Spectrum manufactures specialty medical devices and components, serving 22 of the top 26 medical device OEMs.
The company's products include therapeutic areas such as structural heart, electrophysiology, surgical robotics and cardiovascular.
DuPont said it expects the deal to be "immediately accretive" to its adjusted earnings per share and to achieve high single-digit return on invested capital by year five.
Following the acquisition, approximately 10% of DuPont's consolidated revenue will come from healthcare and strengthen the company's position in low cyclicality healthcare markets.
Spectrum Plastics is owned by AEA Investors LP, 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 and has committed capital of $19 billion.
In 2021, DuPont completed the purchase of Arizona-based Rogers Corporation for $5.2 billion.
Rogers products include high-frequency circuit materials, ceramic substrates for power semiconductor devices, and high-performance foams which go into a variety of highly specialized end-markets including electric vehicles and advanced driver assistance systems.
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