DuPont Sells Aramids Business, Keeps Stake In Future Growth

DuPont DD is parting ways with one of its best-known businesses, striking a deal to sell its Aramids unit the maker of Kevlar and Nomex to TJC affiliate Arclin in a transaction valued at about $1.8 billion. Shares inched higher Friday morning.

The deal gives DuPont around $1.2 billion in cash up front, a $300 million note receivable, and a roughly 17.5% equity stake in the new Arclin company, valued at $325 million. That keeps DuPont tied to the business even after the sale.

The Aramids unit, with 1,900 employees across five sites, pulled in $1.3 billion in sales last year. CEO Lori Koch said the sale sharpens DuPont's focus while still letting shareholders benefit from Arclin's growth.

The divestiture won't change the company's timeline for spinning off its electronics unit, which is still set for Nov. 1. The moves mark another step in DuPont's effort to simplify its portfolio and improve financial flexibility.