Wilmington, DE, and Wichita, KS, Nov. 17--DuPont and Koch Industries, Inc. today announced they have reached a definitive agreement to sell Invista, formerly DuPont Textiles & Interiors, to subsidiaries of Koch for $4.4 billion in cash. The two subsidiaries are KED Fiber Ltd. and KED Fiber, LLC.
Closing is expected in the first half of 2004, subject to government approvals. The transaction is expected to be neutral to accretive to DuPont earnings in 2004.
"This is a major milestone in the ongoing transformation of DuPont," said DuPont chairman and CEO Charles O. Holliday, Jr. "The fibers businesses have been an important part of DuPont for many decades. However, marketplace realities dictate they can best realize their potential as part of a company like Koch which is fully committed to Invista and the markets it serves. We believe this outcome will provide the best opportunity for the people who have made these businesses successful in the past and will take them into the future."
"This acquisition is an excellent fit with our capabilities and vision for long-term growth," said Charles G. Koch, chairman and chief executive officer of Koch Industries. "By combining Invista's many capabilities and strong brands, primarily in nylon and spandex, with the polyester businesses of our KoSa subsidiaries, we will create a diverse company, well-positioned to compete in the global fibers and resins markets."
"Now that one of the most significant changes in our 201-year history is moving toward completion, we can focus on positioning DuPont for growth," Holliday said. "This will involve dedicated, unwavering effort by all DuPont employees. We have talented people, know-how across markets and industries, and the strong science capability necessary for success. Our goal is to channel those capabilities into opportunities for our company, both near and long-term."
Holliday said DuPont shortly will outline actions it will take to ensure competitiveness in global markets and achieve its growth objectives.
