DuPont announced plans to acquire Rogers Corporation, an electronics materials specialist, in an all-cash transaction valued at $5.2 billion.
DuPont
During its third-quarter shareholders' report, DuPont also announced moves that would remake the famed chemicals company following years of subpar performance in its shares.
"We are exploring options to divest a substantial portion of the Mobility & Materials segment," said Ed Breen, DuPont executive chairman and CEO, in the report.
“With these announcements, and building on our recent acquisition of Laird Performance Materials, we are significantly advancing our position as a premier multi-industrial company focused in the secular growth areas of electronics, water, protection, industrial technologies and next generation automotive," continued Breen. "We are strengthening these pillars to further expand our capabilities to deliver differentiated, value-added technologies. These steps are expected to create tremendous opportunities for employees and unlock significant value for shareholders."
Following the closing of the transaction, Rogers will be integrated into DuPont’s Electronics & Industrial business unit. Rogers significant applications engineering, design expertise, and deep customer relationships form a strong strategic fit with DuPont’s innovation capabilities and collaborative approach to solving the most complex customer challenges, said officials in a Rogers' news release.
The transaction delivers substantial value to Rogers’ shareholders, who will receive $277 in cash per share, representing a 33% premium over Rogers’ closing share price on November 1, 2021, and a 46% premium to the 1-month volume weighted average share price.
“Rogers is a recognized global leader in advanced materials solutions, and this combination with DuPont will help accelerate our long-term growth in EV/HEV, ADAS and other key markets,” stated Bruce D. Hoechner, Rogers' president and CEO. “The Rogers’ team has created a growth-focused organization built on a foundation of strong technology leadership and customer intimacy. Our combination with DuPont, a proven leader in technology-based materials, provides resources and support to allow Rogers to scale for success. Rogers is a natural fit with DuPont, and this combination will create an exciting next chapter for Rogers’ customers, employees and partners.”
Breen said the combination of Rogers with DuPont's Electronics & Industrial business further strengthens the company's market-leading portfolio and ability to bring new solutions to exciting end markets.
"We look forward to welcoming Rogers’ employees and working together to deliver essential innovations that help our customers and company grow,” said Breen.
