DuPont Textiles separation will affect DuPont Canada

As part of its offer to buy the outstanding shares of DuPont Canada Inc., DuPont has disclosed that it is in negotiations with a third party regarding the sale of DuPont Textiles & Interiors (DTI). DuPont intends to separate DTI by the end of 2003. The spin-off relates to DuPont Canada (Mississauga, ON) because DTI comprises a substantial portion of DuPont Canada’s business and operations.
If DuPont (Wilmington, DE) is not successful in acquiring 100% of the outstanding minority shares of DuPont Canada, the parent company intends to transfer its entire share ownership interest in DuPont Canada to DTI. The minority shares of DuPont Canada are held principally by Canadian investors, including almost 2000 employee shareholders.
Other options to separate the DTI business include an initial public offering.
DuPont Canada’s business segments are: Nylon Enterprise (35% of sales); Performance Coatings and Polymers, including engineering resins (23%); Specialty Fibres (10%); Specialty Materials (14%); and Specialty Polymers and Films (18%). The Specialty Polymers and Films segment includes the blown film operations of Enhance Packaging Technologies Inc. (Whitby, ON) and Liqui-Box.
DuPont Canada Inc. had net sales of $2,191 million in 2001. It has 3400 employees.