![This is Matt Reustle and today we are breaking down DuPont. We cover the fascinating history of the du Pont family, the differences between commodity chemicals and specialty chemicals, the processes behind DuPont's well-known products such as Nylon and Kevlar, and lessons learned from the strategic mergers and divestments that DuPont has made.<br /> <br />Our guest is Seth Goldstein from Morningstar. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/24325734/goldstein-dupont-specialty-chemicals<br /> <br />-----<br />This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.<br />-----<br />This episode is brought to you by Scribe. Scribe is the trusted transcription provider for the business and investing community. Scribe is designed to accurately transcribe messy, real-world audio and is unique in that it’s optimized for the complexities of enterprise audio, such as company and product names, currencies, accents and numbers. Visit kensho.com/breakdowns to learn more and unlock your free trial.<br />—--<br /> <br />Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br />Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br />Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt<br /> <br />Show Notes<br />[00:00:00] - Introduction<br />[00:03:38] - [First question] - Key products that define Dupont’s history and where their products show up in our everyday lives<br />[00:06:23] - The science that goes into developing their products and what being a speciality chemicals business looks like<br />[00:10:30] - The thought process that went into their merger with Dow in December 2015<br />[00:13:21] - Commodity chemicals versus speciality chemicals<br />[00:16:01] - The importance of patents and early products that first had them<br />[00:19:47] - Their economic model and profile and current businesses<br />[00:23:56] - How their EBITDA margins today compare to the business historically<br />[00:25:27] - Overview and duration of their merger supply agreements<br />[00:27:52] - Producing on a per-order basis or on market speculation<br />[00:31:00] - Stability and internal investment of their cash flow cycle<br />[00:32:28] - History of the Dupont family and key leadership changes<br />[00:34:24] - Thoughts on the bull case for Dupont that will put them back on the pedestal <br />[00:36:28] - The percentage of the market they represent today and their current competitors<br />[00:37:56] - Metrics used when valuing commodity and speciality chemical businesses<br />[00:40:03] - Prior regulatory fines and potential risks going forward<br />[00:46:44] - Key lessons for operators and investors from Dupont’s story<br /><br />#businessbreakdowns #dupont #podcast](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
This is Matt Reustle and today we are breaking down DuPont. We cover the fascinating history of the du Pont family, the differences between commodity chemicals and specialty chemicals, the processes behind DuPont’s well-known products such as Nylon and Kevlar, and lessons learned from the strategic mergers and divestments that DuPont has made.
Our guest is Seth Goldstein from Morningstar.
Show Notes
[00:00:00] – Introduction
[00:03:38] – [First question] – Key products that define Dupont’s history and where their products show up in our everyday lives
[00:06:23] – The science that goes into developing their products and what being a speciality chemicals business looks like
[00:10:30] – The thought process that went into their merger with Dow in December 2015
[00:13:21] – Commodity chemicals versus speciality chemicals
[00:16:01] – The importance of patents and early products that first had them
[00:19:47] – Their economic model and profile and current businesses
[00:23:56] – How their EBITDA margins today compare to the business historically
[00:25:27] – Overview and duration of their merger supply agreements
[00:27:52] – Producing on a per-order basis or on market speculation
[00:31:00] – Stability and internal investment of their cash flow cycle
[00:32:28] – History of the Dupont family and key leadership changes
[00:34:24] – Thoughts on the bull case for Dupont that will put them back on the pedestal
[00:36:28] – The percentage of the market they represent today and their current competitors
[00:37:56] – Metrics used when valuing commodity and speciality chemical businesses
[00:40:03] – Prior regulatory fines and potential risks going forward
[00:46:44] – Key lessons for operators and investors from Dupont’s story