DuPont to split into three companies

From left: Antonella Franzen, DuPont’s new CFO; retiring CEO Ed Breen; Lori Koch, DuPont’s new CEO. Photo Credit: DuPont Co.

Plastic and chemical maker DuPont Co. is separating into three distinct, publicly traded companies.

Under the plan, which was announced on May 22, DuPont will spin its electronics business into one new firm, its water businesses into a second, and with the remaining DuPont – called New DuPont – continuing as “a premier diversified industrial company.” Plastics-related businesses will be retained in New DuPont.

“As independent entities, both Electronics and Water will benefit from increased focus and agility in their respective industries,” company officials said. “At separation, each of the three companies will have strong balance sheets, attractive financial profiles and compelling growth opportunities.”

The company expects to complete the split in 18 to 24 months and before that it will announce the executive leadership of the separate companies.

DuPont also announced May 22 that Chief Financial Officer (CFO) Lori Koch will replace Ed Breen as CEO on June 1. Breen will retain his role of executive chairman. Antonella Franzen, the current CFO of DuPont’s water and protection segment, will become CFO of the overall company.

The split into three companies is the latest in a period of transition for DuPont. Back in 2015, DuPont and Dow had agreed to merge for US$130 billion, in which the two companies then split into three. In 2017, DowDuPont spun off its chemical businesses as Dow and its agribusiness division into Corteva, with DuPont remaining on as the company it is today.