Dive Brief:
- DuPont de Nemours is selling its aramid fibers business to chemical manufacturer Arclin for approximately $1.8 billion, the company announced last week.
- The agreement includes brands Kevlar and Nomex. Aramids are synthetic fibers used to make protective gear in high-risk situations such as firefighting, industrial settings and combat.
- The deal includes 1,900 employees and five manufacturing sites, according to the press release. The divestiture is expected to close in the first quarter of 2026.
Dive Insight:
The divestiture is part of DuPont’s 2025 realignment segment strategy, which it began in Q1, according to a March 31 securities filing. DuPont initially planned to break into three independent companies: materials science, water technologies and electronics.
DuPont changed its separation plans in January and decided “New DuPont” will comprise materials science and the water business, and instead only spin off its electronics segment.
The revamped plans led the chemical titan to adjust its segment reporting structure due to the upcoming electronics separation, accounting as “ElectronicsCo” and “IndustrialsCo,” CFO Antonella Franzen said in a Q1 earnings call. The industrials segment comprises two lines of business: healthcare and water technologies, and diversified industrials, Franzen added.
After analyzing the segments’ performance, DuPont decided that the aramid assets within its industrials segment were worth more than their current market value. The net sales for the aramids business were $675 million in the first six months of 2025.
The aramids divestiture will not impact the company’s separation plans as it remains on track to spin off its electronics segment Qnity Electronics by Nov. 1, according to the press release.
“Our focus right now, obviously, as I mentioned, is getting Qnity out the door on November 1,” CEO Lori Koch said in an Aug. 5 call. “We have been pretty clear, though, that we’ll look to shift the focus of the portfolio towards the Healthcare and the Water and that we had incremental portfolio work that we would probably be doing for New DuPont.”
When the deal closes next year, DuPont will generate approximately $1.2 billion in cash before taxes as well as receive $300 million. Additionally, DuPont will have a 17.5% stake in Arclin valued at $325 million.
The manufacturing plants DuPont is selling off are located in Richmond, Virginia; Monroe, North Carolina; LaPlace, Louisiana; Maydown, Northern Ireland; and Asturia, Spain, Dan Turner, corporate media relations, said in an email.
“The Aramids transaction further enhances the strategic focus of our portfolio, while also increasing the growth and margin profile,” Koch said in a statement. “The transaction is structured to maximize value for our shareholders by providing significant cash proceeds at close which will be re-deployed to further drive value creation, while also allowing DuPont shareholders to participate in Arclin's growth potential through our retained equity interest.”
For Arclin, which is owned by venture capital and private equity firm TJC, the pending acquisition will enable the chemical manufacturer to expand its portfolio, according to its Aug. 29 press release. The broadening portfolio, which will include aerospace, electrical infrastructure, electric vehicles, personal protection and defense, also aims to strengthen its presence and help accelerate its entry into new global markets.
“The Kevlar and Nomex brands have long been known for their innovation and protective qualities,” Arclin President and CEO Bradley Bolduc said in a statement. “With this planned acquisition, Arclin will unlock the potential for these brands, ushering in a new era of advanced materials that can make homes, workplaces and communities stronger, safer and more resilient.”
