Advent Sees 15x on Latest Exit

Advent Sees 15x on Latest Exit

DuPont has agreed to acquire the performance materials unit of Laird Technologies for $2.3 billion. The transaction is expected to close in the third quarter of 2021.

Advent International acquired Laird Technologies in July 2018 in a public-to-private transaction for just under $1.4 billion. Post-closing, Advent organized the business into four units – performance materials, connectivity, thermal management, and connected vehicles. This last unit was sold to Molex Electronic Technologies in December 2018.

Laird’s performance materials unit (LPM) manufactures microwave absorbers and electromagnetic enclosure and shielding systems – made from thermoplastics, elastomers, films and foams – that are used to protect sensitive electronic components in automotive, consumer electronics, datacenter, industrial, and medical applications.

According to DuPont, the purchase price for LPM of $2.3 billion equals a transaction multiple of approximately 15x estimated 2021 EBITDA excluding synergies and 11x including synergies (DuPont has forecasted synergies of $60 million). LPM revenues in 2020 were $465 million with a gross margin of approximately 50% and an adjusted EBITDA margin of approximately 30%. LPM has more than 4,300 employees and 11 manufacturing facilities in North America, Europe, and Asia.

“Laird’s performance materials unit is an outstanding business. Following a strategic refocus and investment in the company’s product offerings and talent, the business has achieved strong growth,” said Shonnel Malani, a managing director at Advent International. “We believe that DuPont will be an excellent partner for the performance materials unit and the combined organization will be ideally placed to provide customers with a unique and broad range of comprehensive and innovative solutions.”

“The acquisition of LPM is a significant step in advancing DuPont’s strategy to grow as a global innovation leader and premier multi-industrial company,” said Ed Breen, the CEO of DuPont. “LPM is a strategic and complementary addition to our electronics and industrial business, and our applied material science expertise together with LPM’s industry-leading application engineering capabilities further strengthens DuPont as an essential partner for major electronics OEMs and manufacturers.”

DuPont de Nemours (NYSE: DD), commonly known as DuPont, is a multinational chemical and specialty materials company with revenues of more than $20 billion. Dupont is headquartered in Wilmington, Delaware.

Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer, and leisure; and technology, media and telecom. The firm has 15 offices in 12 countries and employs 195 investment professionals across North America, Europe, Latin America, and Asia. Founded in 1984 and headquartered in Boston, Advent has $66 billion in assets under management and has completed more than 350 private equity transactions.

Morgan Stanley & Co. and Rothschild & Co. are the financial advisors to Advent International and J.P. Morgan is the financial advisor to DuPont.

© 2021 Private Equity Professional | March 9, 2021

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