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DuPont's corporate headquarters offices are located at the Chestnut Run Plaza campus on Wednesday, Dec. 9, 2015, in Wilmington, Delaware.
CNN
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DuPont, the American multinational chemical company founded in 1802, on Wednesday announced plans to split into three publicly traded companies.
The company plans to separate its electronics and water businesses into separate, as yet unnamed companies, in a transaction that will be tax-free for shareholders. DuPont said it expects the separation transactions to close within the next 18 to 24 months and are subject to final approval by DuPont's board of directors.
The announcement also includes a leadership shakeup. DuPont's Chief Financial Officer Lori Koch will become CEO, effective June 1. DuPont's current CEO, Ed Breen, will remain as chairman of the board. Koch will remain CEO of the new DuPont after the separation is complete, the company said.
DuPont split into other Large multinational companies have announced demergers in recent years, with many CEOs and boards touting agility. of small and medium-sized enterprises.
Breen reiterated similar claims in a statement, saying the separation will give the three smaller companies greater flexibility.
“The separation will create additional value for shareholders and customers and new opportunities for employees,” he said. “Importantly, it will provide each company with greater flexibility to pursue its own focused growth strategies, including portfolio-strengthening M&A.”
In recent years, major American companies such as J&J, Kellogg and General Electric have announced divisions and spinoffs, signaling a preference for smaller, more agile companies over the conglomerates that made their mark over the past few decades.
This is the second time in five years that DuPont has disbanded. In 2019, DowDuPont, formed from the merger of DuPont and Dow Chemical, was separated into three separate entities: DuPont, Dow Chemical, and the company's agricultural business, Corteva.
DuPont said Wednesday that the new electronics company will focus on “semiconductor solutions and advanced electronics products,” while the new water company will be a “comprehensive water solutions provider.” The remaining divisions will remain part of DuPont.
