DuPont is set to sell its Aramids unit--home to well-known heat-resistant brands Nomex and Kevlar --to Arclin in a deal valued at $1.8 billion, the companies announced on August 29.

The transaction is part of DuPont's broader restructuring strategy and comes ahead of the planned spinoff of its electronics business in November 2025. The divestiture is expected to sharpen the company's focus and improve its growth and margin outlook post-reorganization.

Arun Viswanathan, an analyst at RBC Capital Markets, noted the sale could support a stronger valuation for DuPont following the electronics unit separation. Proceeds from the sale--expected to close in Q1 2026--include approximately $1.2 billion in pre-tax cash, a $300 million note receivable, and a $325 million non-controlling stake in Arclin.

Nomex® is a synthetic aramid insulation material developed by DuPont in the 1960s, widely used in transformers for its excellent thermal stability, flame resistance, and long-term durability. It enabled the development of high-temperature, compact, and more reliable transformer designs compared to traditional cellulose-based insulation.

Analysts expect DuPont to use the proceeds for strategic acquisitions, share repurchases, and debt reduction.

Source: reuters.com