DuPont to acquire Laird from Advent International for $2.3B in cash

DuPont de Nemours Inc. announced today that it has entered into a definitive agreement to acquire Laird PLC from Advent International for $2.3 billion in cash, according to a press release.

DuPont will fund the transaction from its existing cash balances, and the transaction is expected to close in the third quarter of 2021 subject to customary closing conditions and regulatory approvals.

Laird currently has a covenant-lite first-lien term loan due July 2025 (L+450, 0% Libor floor) that totaled $750 million when it was issued in May 2018 to back the buyout of the company by Advent International. The term loan is quoted in a 100/100.5 context.

According to the press release, Laird had revenues of $465 million in 2020 and gross and adjusted EBITDA margins in the 50% area and 30% area, respectively. DuPont expects to realize $60 million of pretax run-rate cost synergies by the end of 2024, with a one-time cost of around $40 million to achieve the synergies. The transaction represents an approximately 15x enterprise value multiple based on estimated 2021 EBITDA, and approximately 11x including cost synergies.

J.P. Morgan is serving as financial adviser for DuPont, while Morgan Stanley and Rothschild are acting as financial advisers to Advent International.

U.K.-based Laird provides systems and components that protect electronics from electromagnetic interference and heat. DuPont provides technology-based materials, ingredients and solutions.