By Jessica Domel
Multimedia Reporter
Two weeks after their successful merger, DowDuPont is clarifying and altering its plan to later split into three independent companies.
After analyzing the company’s plan for businesses focusing on agriculture, materials science and specialty products, the board of directors announced a few changes to what companies, or lines, will go to the materials science and specialty products divisions.
The former Dow Corning will now be split between both the materials science and the specialty divisions.
The agriculture company will combine DuPont Pioneer, DuPont Crop Protection and Dow AgroSciences to offer seeds, traits, crop chemicals and more.
If all goes according to the current plan, the company will be headquartered in Wilmington, Delaware with business centers in Iowa and Indiana.
The materials science company, which is expected to be the largest in terms of revenue, will maintain the Dow brand.
It will include segments focusing on performance materials and coatings, industrial intermediates and infrastructure and packaging and specialty plastics.
It will be headquartered in Michigan.
The third and final business after the split will combine electronics and imaging, transportation and advanced polymers, safety and construction and the nutrition and biosciences lines.
The specialty products company, as DowDuPont refers to it, will include the following companies from Dow: Automotive Systems’ adhesives and fluids platforms, Building Solutions, Water and Process Solutions, Pharma and Food Solutions and Microbial Control. It will also include DuPont’s Performance Polymers business.
All of the above were originally intended to be in the materials science company. The board decided to move them to specialty products following the comprehensive review of the portfolios.
“The changes we are making will enhance the competitive advantages and value creation potential of DowDuPont and ensure that the intended companies have the best possible foundation to drive long-term value for all stakeholders,” Ed Breen, chief executive officer of DowDuPont, said. “The facts clearly supported the strategic logic of this portfolio configuration. Each of the intended companies will have even stronger competitive positioning, high value-added customer solutions and a distinct and compelling investment thesis, while maximizing opportunities for strategic growth and synergies. With clear focus, each will serve attractive and growing markets, investing in innovation and delivering greater returns for shareholders.”
The company will be headquartered in Delaware.
DowDuPont is expected to split into the three individual companies in 18 months.