Summary
This Form 8-K filing from E. I. du Pont de Nemours and Company (DuPont) reports a significant event concerning the DuPont Dow Elastomers LLC (DDE) joint venture. The Dow Chemical Company (Dow) has elected to exercise its option to acquire certain assets related to ethylene and chlorinated elastomers, specifically the Engage®, Nordel®, and Tyrin® businesses, from DDE. This will occur through an equity redemption transaction where Dow's interest in DDE is redeemed. Following this asset transfer, DuPont will purchase Dow's remaining equity interest in DDE for $87 million. This transaction is a continuation of agreements previously announced in April 2004, which granted Dow the option for these specific asset acquisitions. The transaction is expected to close on June 30, 2005, subject to customary conditions and regulatory approvals. Post-transaction, DDE will become a wholly owned DuPont subsidiary, renamed, and will continue to operate the Neoprene, Hypalon®, Kalrez®, and Viton® businesses.
Key Highlights
- 1Dow Chemical has exercised its option to acquire specific elastomer assets (Engage®, Nordel®, Tyrin®) from the DuPont Dow Elastomers LLC (DDE) joint venture.
- 2DuPont will acquire Dow's remaining equity interest in DDE for $87 million immediately after the asset transfer.
- 3The transaction is expected to close on June 30, 2005, contingent on regulatory approvals and other customary conditions.
- 4Upon completion, DDE will become a wholly owned subsidiary of DuPont and will be renamed.
- 5The remaining DDE business under DuPont's ownership will include the Neoprene, Hypalon®, Kalrez®, and Viton® product lines.
- 6This event stems from agreements made in April 2004, which initially granted Dow the option for these asset acquisitions.