DuPont Calls It Splits

DuPont announced yesterday a plan to split the company into three publicly traded entities. Under the plan, the proposed separation of its electronics and water businesses would be conducted in a tax-free process for shareholders. The so-called New DuPont would continue as a “premier diversified industrial company” powered by deep materials science and application engineering expertise, the company said in its announcement.

The standalone electronics and water businesses would benefit from a greater ability to tailor capital allocation and growth strategies aligned with their brands, among other advantages, according to DuPont.

Positioned for growth in medical markets.

New DuPont, for its part, will have a strong presence in the fast-growing healthcare end-markets, including applications for biopharma consumables, medical devices, and medical packaging. Technologies enabling advanced mobility, particularly within electric vehicles, also will be a key focus. Finally, New DuPont will remain a provider of advanced solutions serving safety, construction, aerospace, and other industrial-based end-markets, explained company officials.

Flexibility to pursue focused growth strategies.

“This is an extraordinary opportunity to deliver long-term, sustainable shareholder value through the creation of three strong, industry-leading companies,” said Ed Breen, DuPont executive chairman and CEO. “The three-way separation will unlock incremental value for shareholders and customers and also create new opportunities for employees. Critically, each company will have greater flexibility to pursue [its] own focused growth strategies, including portfolio-enhancing M&As.”

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New DuPont will be comprised of the existing businesses within the Water & Protection segment (excluding Water Solutions), the majority of businesses within Industrial Solutions (including healthcare), and the retained businesses reported in the corporate statement (including adhesives). These businesses generated net sales of approximately $6.6 billion in 2023, reported DuPont.

The separation is expected to be completed within 18 to 24 months, the company said.

C-suite moves.

In related news, DuPont also announced changes in leadership, effective June 1, 2024. Lori Koch, currently chief financial officer (CFO), will replace Breen as CEO (he will retain his role as executive chairman), and Antonella Franzen is leaving her position as chief financial officer of DuPont’s Water & Protection segment to take over Koch’s CFO duties.