DuPont Expands Sustainable Solutions Capabilities and Emerging Markets Reach by Signing Agreement to Acquire MECS
Clean Technology Growth Opportunity Advances Commitment to Innovations That Help Protect the Environment
WILMINGTON, Del., Nov. 10, 2010 /PRNewswire-FirstCall/ -- DuPont (NYSE: DD) has signed a definitive agreement to acquire MECS, Inc., from affiliates of American Securities LLC, advancing the company's capabilities to deliver sustainable solutions and further expand its reach in emerging markets. The acquisition will expand the DuPont clean technologies portfolio with complementary science-based offerings and provide the company with further access to high-growth market segments, particularly in developing regions like Asia Pacific and the Middle East. Terms of the agreement were not disclosed.
"Every day around the world DuPont applies its market-driven science and knowledge to help customers address some of the world's biggest challenges -- including protecting the environment," said James R. Weigand, president, DuPont Sustainable Solutions. "MECS' technologies and services will expand and strengthen DuPont Sustainable Solutions business' clean air and clean fuel offerings and provide access to markets beyond those we now serve. We estimate that this acquisition will increase the addressable market for our clean air and clean fuel offerings from approximately $200 million to $1 billion."
"I believe the union of DuPont and MECS is an excellent fit and will benefit both our organizations and our customers," said MECS CEO Nick Bhambri. "Together, we will be able to share and integrate our science, technology and human resources to create an expanded portfolio to enhance the safety, reliability and environmental sustainability of our customers' facilities."
MECS is a leading global provider of process technology, proprietary specialty equipment, and technical services to the sulfuric acid industry. A large share of the world's sulfuric acid producers use MECS technology to capture sulfur that would otherwise become a pollutant and transform it into sulfuric acid, the most widely used chemical in the world and a vital part of virtually every industry. MECS technologies enable its users -- primarily in the fertilizer, non-ferrous metals, petroleum refining and chemical industries -- to operate with improved environmental characteristics including reduced air emissions, improved operational efficiencies and lower energy use.
The consumption of sulfuric acid often reflects the size of a country's gross domestic product; as the standard of living improves, the demand for sulfuric acid increases. As a result, the major growth areas for sulfuric acid production now and in the future are expected to be in the emerging economies such as China, India, the Middle East, and parts of Africa. MECS operates globally with approximately 70 percent of its revenue generated outside North America and in locations that include Brazil, China, India, and northern and southern Africa.
"The markets are highly attractive to us," Weigand said. "DuPont can add value to the sulfuric acid offerings with our technology, licensing, proprietary equipment, consulting and training resources. We intend to continue to enhance technology solutions and make them available to a broader segment of industries and customers."
Weigand added that DuPont's familiarity with the sulfuric acid industry will facilitate the integration of offerings. DuPont has more than 100 years of experience in the production and safe handling of numerous compounds, including sulfuric acid. DuPont and MECS also have a history of offering complementary technologies in the refining industry. In addition to its standard offerings for the sulfuric acid industry, MECS produces pollution control scrubbing systems, mist eliminators that reduce particulate emissions and proprietary heat recovery systems that generate carbon-neutral energy.
DuPont Sustainable Solutions offers collaborative consulting and solutions-driven technologies and services that help organizations transform their workplaces and work cultures to become safer, more efficient, and more environmentally sustainable. Its offerings are grouped into four practice areas: Safety Resources, Sustainable Operations, Clean Technologies, and Training Solutions.
DuPont (www.dupont.com) is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 90 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
DuPont Sustainable Solutions: www.safety.dupont.com
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