DuPont plans to split into three listed companies to join a group of industrial enterprise groups seeking to increase returns by segmenting smaller and more focused businesses.
The company announced on Wednesday that it will split its electronics and water business through a duty-free transaction, and the remaining business will focus on industries such as biopharmaceuticals and medical devices, with products including Tyvek and Kevlar.
Prior to that, a series of benchmark companies such as Johnson & Johnson, United Technologies, Danaher, and General Electric have all been spin-off in recent years to create more value for shareholders.
DuPont said CEO Ed Breen will step down on June 1. He will continue as Executive Chairman of the remaining business companies, and Chief Financial Officer Lori Koch will serve as CEO.
Breen said in a statement that the spin-off plan will give each new company greater flexibility to pursue their own focused growth strategies.