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InvestmentsDuPont seeks electronic materials muscle with $5.2 billion Rogers deal By Reuters

DuPont seeks electronic materials muscle with $5.2 billion Rogers deal By Reuters


© Reuters. FILE PHOTO: A emblem is pictured outdoors of Dupont workplaces in Geneva, Switzerland, April 15, 2021. REUTERS/Denis Balibouse/File Photo

By Arathy S Nair

(Reuters) – DuPont (NYSE:) Inc on Tuesday agreed to purchase engineering materials maker Rogers (NYSE:) Corp for $5.2 billion, its largest deal since splitting from DowDuPont, to produce to fast-growing industries akin to electrical automobiles, 5G and clear power.

Chief Executive Officer Ed Breen, a well known deal maker, has been constructing out DuPont’s high-margin companies akin to electronics and water options. The firm in July snapped up Laird Performance Materials for $2.3 billion after earlier divesting its diet & biosciences unit.

On Tuesday, the corporate introduced plans to promote a considerable portion of its extra cyclical mobility & materials unit, together with its stake within the DuPont Teijin Films three way partnership.

DuPont is taking a look at a few different targets, Breen informed Reuters, including that any deal can be to develop within the firm’s core companies.

Breen, who has beforehand headed Tyco International, Motorola (NYSE:) and General Instrument, is credited with being instrumental within the merger of Dow and DuPont and the spilt of the chemical compounds conglomerate into three firms later. DuPont then emerged as an industrial solutions-focused enterprise.

Rogers inventory was up 30% in morning commerce, simply shy of the provide of $277 per share. DuPont’s shares gained 5%, reversing course from premarket commerce.

DuPont additionally beat third-quarter estimates, as robust demand and pricing good points helped offset greater uncooked materials prices.

Sales of $4.3 billion topped estimates of $4.1 billion, whereas revenue of $1.15 per share beat expectations of $1.12, in response to Refinitiv IBES information.

However, DuPont reduce its full-year gross sales and revenue forecasts, after having raised them twice up to now, citing slowing orders in automotive markets as a result of a world chip scarcity.

Breen stated he expects the chip scarcity to “persist well into 2022, though may be not at the same level as now,” including he expects it to ease solely when subsequent capability comes on-line, anticipated by subsequent 12 months.

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