DuPont to split into three companies, CEO Brin resigns

On May 22, DuPont announced plans to split the entire company into three publicly traded companies. Electronics and Water will become independent companies, with the remainder of the company forming the new DuPont. The company said the spin-off is expected to be completed within 18 to 24 months and does not require shareholder approval.

Ed Breen, executive chairman and CEO of DuPont, said:"The separation will unlock incremental value for shareholders and customers and create new opportunities for employees. Crucially, each company will have more flexibility to pursue its own focused growth strategies, including portfolio-enhancing M&A."

New DuPont

The new DuPont of the future, including brands such as Tyvek, Kevlar and Nomex, will serve in a important position in healthcare (including biopharmaceutical consumables, medical devices and medical packaging applications), advanced mobility (particularly electric vehicles), and security, construction and aerospace. The above businesses had net sales of approximately US$6.6 billion in 2023, with an operating EBITDA margin of approximately 24%.

Electronic entity company

The new electronics business entity will become a leading global supplier of differentiated electronic materials, including key consumables used in semiconductor chip manufacturing as well as advanced electronic materials. DuPont identifies megatrend growth drivers such as artificial intelligence, high-speed connectivity, smart and autonomous vehicles, and the Internet of Things as key end markets.

The electronics business will be comprised of the existing semiconductor technology and interconnect solutions business lines as well as the electronics-related product lines of industrial solutions. These businesses had net sales of approximately $4 billion in 2023 and operating EBITDA margins of approximately 29%.

Water company

The water utility of the future will have comprehensive water filtration and purification solutions, including leading technologies in reverse osmosis, ion exchange and ultrafiltration, to meet the needs of market segments including industrial water and energy, life sciences and specialties, municipal and desalination, and residential and commercial.

The water company will be comprised of DuPont's current Water Solutions business line, which had net sales of approximately $1.5 billion in 2023 and operating EBITDA margin of approximately 24%.

Koch named DuPont's next CEO

DuPont announced that Lori Koch, currently the company's chief financial officer, will succeed Ed Breen and serve as CEO and director of the new DuPont company starting June 1; Breen will became full-time executive chairman on that day. Antonella Franzen, currently chief financial officer of DuPont's water and protection segment, will also serve as chief financial officer of the entire company, effective June 1.