DuPont Agrees to Divest Its Aramids Business to Arclin for $1.8B

DuPont de Nemours, Inc. DD has entered into a definitive agreement with Arclin, a portfolio company of an affiliate of TJC, L.P. (TJC), to sell off its Aramids business, including Kevlar and Nomex brands, for approximately $1.8 billion.The transaction is expected to close in the first quarter of 2026, upon which DuPont will receive $1.2 billion (pre-tax) in cash, subject to adjustments, $300 million in note receivable and a non-controlling equity stake valued at $325 million, representing around 17.5% ownership in the new Arclin entity. The move does not hamper the planned Qnity electronics business spin-off. It remains on schedule for Nov. 1, 2025.The divestiture is aimed at enhancing the company’s strategic focus and strengthening its financial profile. TJC’s expertise in value creation through an operations-focused approach made it an appropriate choice as a partner. The partnership is expected to drive growth and opportunity for the employees and customers of the combined businesses.For Arclin, the addition of brands will present an opportunity to expand its global reach and strengthen its position in high-performance market-leading applications. The acquisition will enable Arclin to bring about impactful solutions and products to market.DD’s Aramids business, as the inventor and largest global producer of industry-leading high-performance synthetic fibers, generated net sales of $1.3 billion in 2024, with about 1,900 employees and five manufacturing sites.DD stock has lost 4.3% over the past year compared with the industry’s 17.1% decline.Image Source: Zacks Investment ResearchDD’s Zacks Rank & Key PicksDD currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Basic Materials space are Agnico Eagle MinesLimited AEM, The Mosaic Company MOS and Carpenter Technology Corporation CRS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $6.94 per share, implying a 64.07% year-over-year surge. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.03%. AEM’s shares have soared 84.8% in the past year.The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 25.5% in the past year.The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have surged 80.4% in the past year. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DuPont de Nemours, Inc. (DD): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks