What's Happening With Chemical Company DuPont's Shares Today?

Chemical company DuPont Inc. DD shares are trading higher after the company announced its plan to split into three distinct publicly traded entities.

The separation will include its Electronics and Water businesses, executed in a tax-free manner for shareholders. After the separation, New DuPont will continue as a premier diversified industrial company, while Electronics and Water will benefit from increased focus in their industries,

Each entity will have dedicated management teams and tailored capital strategies to pursue strategic growth objectives.

"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’s Executive Chairman and CEO.

“The three-way separation will unlock incremental value for shareholders and customers and also create new opportunities for employees.”

New DuPont will emerge as a diversified industrial company with expertise in materials science, application engineering, and brands like Tyvek, Kevlar, and Nomex.

It will have a significant presence in healthcare, advanced mobility, and industrial markets, generating approximately $6.6 billion in sales in 2023.

Electronics: The Electronics business will focus on semiconductor materials and advanced electronics, driven by demands from AI, smart vehicles, and IoT.

With sales of around $4.0 billion in 2023, it will pursue both organic and inorganic growth initiatives.

Water: Water will specialize in water filtration and purification technologies, addressing needs across industrial, municipal, and residential markets. The division reported $1.5 billion in sales in 2023.

The separations, expected to be tax-free for U.S. shareholders, should be completed within 18 to 24 months, subject to customary conditions and regulatory approvals.

DuPont anticipates all three companies will maintain strong balance sheets and financial flexibility.

Effective June 1, 2024, Lori Koch will succeed Breen as CEO, while Antonella Franzen will become CFO. They will retain their positions in New DuPont post-separation.

Financial Outlook: DuPont reaffirmed its financial guidance for the second-quarter and the full year 2024, consistent with its previous earnings release on May 1, 2024.

DD Price Check: Shares of Dupont were up 0.1% to $78.64 at the time of publication Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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