DuPont splits into three and renews top management

DuPont announced a plan to separate into three distinct, publicly traded companies. Under the plan, DuPont would execute the proposed separations of its Electronics and Water businesses in a tax-free manner to its shareholders with New DuPont continuing as a premier diversified industrial company following completion of the separations. As leading standalone companies, each business is expected to benefit from: an ability to tailor capital allocation strategies to pursue differential strategic growth objectives; enhanced strategic flexibility to pursue portfolio enhancing mergers and acquisitions; compelling investment profiles appealing to different investor bases; distinct boards of directors and management teams comprised of world-class leaders with track records of driving value creation in each specific industry.

New DuPont will be a premier diversified industrial company powered by deep materials science and application engineering expertise, industry-leading innovation, top-tier manufacturing capabilities, and iconic brands such as Tyvek, Kevlar and Nomex. New DuPont will have a strong presence in healthcare, advanced mobility, safety, construction, aerospace and other industrial-based end-markets. New DuPont is expected to continue to deliver strong margins, generate robust cash flow and will have a balanced financial policy similar to the current DuPont, including the ability to invest in growth opportunities. Electronics will be a leading global provider of differentiated electronics materials including key consumables used in semiconductor chip manufacturing, as well as advanced electronic materials enabling reliable signal integrity, power management and thermal management. Water will be a global technology leader with a comprehensive portfolio of water filtration and purification solutions for market segments including industrial water and energy, life sciences and specialties, municipal and desalination, and residential and commercial.

DuPont expects to complete the separations within 18 to 24 months, but the following leadership appointments will be effective June 1, 2024: Lori Koch, current Chief Financial Officer will be appointed Chief Executive Officer, succeeding Ed Breen who will retain his role of Executive Chairman, and Antonella Franzen, current Chief Financial Officer of Water & Protection segment, will become Chief Financial Officer. As for 2024 financial outlook, DuPont reaffirms its full year 2024 financial guidance for net sales, operating Ebitda and adjusted EPS.

“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 Chief Executive Officer. “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 their own focused growth strategies, including portfolio enhancing M&A.”