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Announcement: Moody's views DuPont's $2.3 billion acquisition as a modest credit positiveGlobal Credit Research - 11 Mar 2021New York, March 11, 2021 -- Moody's Investors Service, ("Moody's") views DuPont de Nemours, Inc's. ("DuPont") acquisition of Laird Performance Materials for $2.3 billion as a modest credit positive, largely as it will be funded with existing cash. Laird expands DuPont's market position in advanced electronic materials by expanding into customized products for thermal management and electromagnetic shielding, which are essential to many emerging electronic applications. However, the relatively small size of the business - less than $500 million in revenues and roughly $150 million in EBITDA will not boost earnings or free cash flow significantly. The valuation multiple for Laird is commensurate with other high margin specialty chemical transaction where future growth is expected to remain well above GDP levels. Additionally, DuPont expects to generate roughly $60 million of pre-tax cost synergies by the end of 2024, which will lower the valuation multiple to 11x.On March 8 2021, DuPont announced that it had entered into a definitive agreement to acquire Laird Performance Materials from Advent International, for $2.3 billion. The transaction is expected to close in the third quarter of 2021, subject to regulatory approvals and other customary closing conditions.With the closing of the sale of the Nutrition and Biosciences business on February 1, 2021, DuPont had a significant cash balance of almost $10 billion. On the same day, $3 billion was used to repay its term loan, and another $2 billion is expected to be used in May 2021 to repay $2 billion of notes maturing in 2023, these notes were issued in May 2020.The Laird transaction will utilize roughly half of DuPont's remaining cash, but still leave the company with over $1.5 billion of cash in the first half of the year even after the expected seasonal working capital build and the completion of the 2019 share repurchase authorization. For the full year, Moody's expects DuPont to generate roughly $4 billion of EBITDA before Moody's standard adjustments and lower leverage to below 3.0x on a Moody's adjusted basis. Free cash flow is expected to be over $1 billion providing the flexibility to continue with meaningful share repurchases and fund smaller bolt-on acquisitions.DuPont de Nemours, Inc., headquartered in Wilmington, Delaware, is one of the largest specialty chemicals and materials companies in the world, with annual revenues of roughly $15 billion and EBITDA margins north of 25%. DuPont is comprised of three segments: Electronics & Industrial, Mobility & Materials and Water & Protection.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. John Rogers Senior Vice President Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Glenn B. 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