DuPont (NYSE: DD) plunges around 8% to trade $63.89 in early trading session on Tuesday after the company announced the signing of a formal deal to buy Spectrum Plastics Group from AEA Investors. The purchase price will be paid with cash on hand. Subject to regulatory clearances and other usual closing conditions, the deal is expected to conclude by the end of the third quarter of 2023.
Spectrum is a renowned leader in the advanced manufacture of specialized medical devices and components, servicing 22 of the top 26 medical device OEMs and focusing on key fast-growing therapeutic areas such as structural heart, electrophysiology, surgical robotics, and cardiovascular.
Spectrum employs over 2,200 people and has consistently generated high single-digit growth rates for many years. Spectrum is perfectly aligned with DuPont’s strategic goal of delivering new specialty materials and solutions into attractive end industries with long-term secular growth patterns, thanks to its solid financial performance, sophisticated production capability, and customer-centric mindset.
Executive Chairman and CEO of DuPont, Ed Breen said, “We have been focused on Spectrum for a long time and our team is extremely excited for this opportunity. Spectrum is a compelling strategic complement to our existing healthcare portfolio, which already includes businesses with best-in-class innovation, deep customer relationships and with strong growth and profitability. With this combination, we’ll be able to offer customers additional innovation and manufacturing capabilities with a broader and more integrated solution set.”
AEA Investors Partner Rahul Goyal stated that spectrum is a best-in-class company for the development and advanced manufacturing of specialty medical devices and components. By investing in its commercial and engineering organizations, as well as expanding its manufacturing operations, Spectrum has enhanced its capabilities and offerings in medical end markets, resulting in significant growth and increased profitability. For the past five years, they have been proud to support Spectrum’s transformation, and they believe DuPont is an excellent partner for Spectrum. The partnership is well-positioned to continue offering exceptional customer service and highly engineered solutions for key healthcare applications.
A supplementary deck with additional information is accessible on the Events & Presentations area of DuPont’s Investor Relations website.
