(Reuters) – DuPont said on Wednesday it would split into three publicly traded companies, sending its shares up 5% after the bell as it joined a host of U.S. conglomerates seeking to boost value and drive focused growth.
The company will split its electronics and water businesses in tax-free transactions, and the new DuPont (NYSE:) will continue to operate as a diversified industrial company.
DuPont also named CFO Laurie Koch as CEO, effective June 1, as current top boss Ed Breen will become executive chairman and join the board of directors.
The company expects to complete the separation in 18 to 24 months, with executive management of the individual companies making an announcement before then.
“…each company will have greater flexibility to pursue its own focused growth strategies, including portfolio-expanding mergers and acquisitions,” said outgoing CEO Ed Breen.
Back in 2015, DuPont and Dow agreed to a $130 billion merger, after which the two companies split into three.
In 2017, DowDuPont spun off its chemicals businesses, and Dow and its agribusiness division became Corteva (NYSE:), and DuPont remains the same company it is today.
The new DuPont will house existing businesses in water and protection, industrial solutions and healthcare end markets such as medical packaging.
These businesses had net sales of nearly $6.6 billion in 2023.
The electronics company will primarily include existing semiconductor technologies and interconnect solutions, while the water company will include DuPont’s water solutions business.
DuPont said liabilities related to per- and polyfluoroalkyl substances, or PFAS (dubbed “forever chemicals”), as well as other indemnification obligations to Corteva under the 2019 spin-off agreements, will be split between the three companies by on a proportional basis.