A year ago, it appeared that DuPont’s acquisition of Rogers Corporation, an Arizona-based electronics materials maker, would be the move for its transition into an electronics and clean energy company.
But now, that transformation will occur without Rogers.
DuPont announced Tuesday night it is terminating its $5.2 billion deal to acquire Rogers because the companies were unable to obtain clearance from all required regulators. In September, they said they had received all needed approvals except from China.
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DuPont has not commented beyond a short announcement. It will pay Rogers a $162.5 million termination fee.
In a statement, Rogers said it is evaluating “all options to determine the best path forward.” The company said it maintains a “strong competitive position” in growing markets such as electric vehicles and “a robust pipeline of opportunities.”
Rogers would have been DuPont’s largest acquisition since splitting from Dow Chemical in 2019.
At that time DowDuPont’s materials sciences business, including plastics, paints and skin care products, went to Dow, the seed, pesticide and herbicide businesses went to Corteva Agriscience and DuPont took on the rest. That included everything from legacy Kevlar and Tyvek to dietary supplements, solar panel parts and fire-retardant clothing.
Since then, DuPont has been on a mission to streamline. It wants to be a player in what it views as growing industries: 5G telecommunications, electric vehicles and clean energy.
Rogers was viewed as a big part of that plan. The company has technologies in wireless infrastructure, batteries for hybrid or electric vehicles and wind turbines, among others, that DuPont said would mesh well with its existing electronics businesses and offer exposure in areas of growth it wasn’t heavily involved in.
“The timing could not be better to enter these markets,” DuPont Chairman and CEO Ed Breen told investors last year.
There are signs DuPont is still heading in that direction. Four months prior to announcing the Rogers acquisition, DuPont acquired Laird Performance Materials to support the company’s efforts in artificial intelligence and smart and autonomous vehicles. On Tuesday, it closed the sale of the majority of its mobility and materials segment to a Texas-based company called Celanese Corporation. The $11 billion deal was consummated as a way to pay for the Rogers acquisition.
In a statement, DuPont said it will discuss how it will use the money at its third quarter earnings call on Nov. 8.
The trading market indicated support for DuPont terminating the deal. DuPont shares jumped as much as 9.5% on Wednesday, according to Bloomberg. DuPont had agreed to pay $277 a share. Rogers’ shares closed at $229.48 Tuesday. The share price fell below $130 Wednesday following news of the nixed deal.
Rogers has more than 3,500 employees across 14 manufacturing sites worldwide. It has a facility on Governor Lea Road in Red Lion that last fall employed 132 people who design and manufacture compounds used in electronics and silicon rubber products for a variety of uses, according to Rogers Communications Director Amy Kweder.
In August, DuPont announced plans to build a new production facility near Route 896 and Old Cooch’s Bridge Road in Glasgow to support the expansion of the company’s semiconductor materials business. DuPont estimates it will invest $50 million in the facility. The state approved taxpayer-funded grants up to $1.64 million to support job growth and construction of the building.
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Contact Brandon Holveck at bholveck@delawareonline.com. Follow him on Twitter @holveck_brandon.
