DuPont Co plans to spin off into three publicly traded companies, joining a growing number of industrial conglomerates seeking to boost returns by breaking into smaller, more focused businesses.
The company announced on Wednesday that it will spin off its electronics and water businesses in a tax-free transaction. The remaining businesses will focus on industries such as biopharmaceuticals and medical devices. Products include Tyvek and Kevlar.
Prior to this, a series of benchmark companies such as Johnson & Johnson, United Technologies, Danaher Corporation and General Electric have all carried out spin-offs in recent years in order to create more value for shareholders.
DuPont said CEO Ed Breen will step down on June 1.
He will continue to serve as executive chairman of the remaining businesses. Chief Financial Officer Lori Koch will assume the role of CEO.
Breen said in a statement that the spin-off plan will give each new company greater flexibility to pursue its own focused growth strategy.
DuPont plans to split into three companies, CEO Breen will step down
DuPont plans to spin off into three publicly traded companies, joining a group of industrial conglomerates seeking to boost returns by breaking into smaller, more focused businesses.
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May 23, 2024 5:02 pm