Private equity consortium to buy DuPont Clean Technologies
An international private equity consortium consisting of BroadPeak Global LP, Asia Green Fund, and The Saudi Arabian Industrial Investments Company (Dussur)have signed a definitive agreement to purchase the Clean Technologies business of DuPont de Nemours, Inc. for USD510 million in cash. As part of the transaction, Tensile Capital Management LP is providing preferred equity financing. The transaction is expected to close in the second quarter of 2021 subject to customary closing conditions and regulatory approvals.
Since first producing sulfuric acid catalyst in 1925, DuPont Clean Technologies has become the global leader in: advanced catalyst and process technologies to produce and regenerate sulfuric acid, hydroprocessing technology to desulfurize motor fuels, alkylation technology to produce clean gasoline and advanced air pollution control systems for refineries and chemical facilities. DuPont Clean Technologies also offers a comprehensive suite of aftermarket services and solutions. The Group and DuPont are working together to execute a seamless transition plan that will serve Clean Technologies and its global customer base both reliably and safely.
“DuPont Clean Technologies is a leader in the sulfuric acid, alkylation and scrubbing sectors, with world-class products and aftermarket services. We are excited to have this mission-critical business in our portfolio. We intend to build on this strong foundation and further expand the business with the support of management and our strategic partners,” said Nadim Qureshi, co-founder and managing partner of BroadPeak Global.
“The international makeup of the Group will act as a strong complement to the global operations of this leading platform, and we are eager to work together with our fellow consortium members to drive the business forward,” said Stephen Toy, co-founder and managing partner of BroadPeak Global LP.
“The superior technological suite provided by DuPont Clean Technologies will play an instrumental role in helping countries across the world and particularly Asia Pacific tackle environmental issues, push toward carbon neutrality, reduce pollution from mining, oil refining, and chemical industries and upgrade fuel quality. AGF is excited to partner with a synergistic group of co-investors and a strong management team to further the global green impact of Clean Technologies,” said Dr. Bo Bai, Asia Green Fund’s chairman and CEO.
“The Clean Technologies business established by DuPont has unique, environmentally focused, advanced capabilities that present strong synergies with Saudi Arabia’s strategic industrial sectors. We are excited to partner with a dynamic industrial consortium and help expand the business’s footprint across our region and globally,” said Dr. Raed Al-Rayes, Dussur CEO.
Credit Suisse AG Singapore branch provided committed debt financing for the transaction. Deutsche Bank Securities Inc. acted as sole M&A advisor to the Group. Kirkland & Ellis LLP provided legal counsel to the Group, and Shearman & Sterling LLP and Squire Patton Boggs provided legal counsel to Dussur. Centerview Partners LLC served as financial advisor to DuPont, and Ballard Spahr LLP acted as legal counsel to DuPont.