PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

Sherwin-Williams


Coatings Industry News

Main News Page


DowDuPont Makes Changes to Spinoff Units

Monday, September 18, 2017

Comment | More

Newly merged chemical giant DowDuPont says it has completed a portfolio review of the three companies it intends to split into, and has decided that adjustments will be made to the Materials Science and Specialty Products sectors to give the units a more competitive advantage.

Ed Breen and Andrew Liveris
Images: DowDuPont

The DowDuPont merger closed Aug. 31; the new, merged entity will now begin the process of splitting into three separate, publicly traded businesses with more focused specialization.

The adjustments, which the company says are intended to better align the businesses with the relevant end markets, were approved based on several factors, such as: a review led by lead independent directors; a business and operation analysis of the incorporated information gained during 20 months of pre-planning; and input from stakeholders.

The DowDuPont merger closed Aug. 31; the new, merged entity will now begin the process of splitting into three separate, publicly traded businesses with more focused specialization.

Business Changes

Moving forward, DowDuPont will move the following businesses from the Materials Science Division to the Specialty Products Division:

  • Dow’s Automotive Systems’ adhesives and fluids platforms;
  • Dow’s Building Solutions;
  • Dow’s Water and Process Solutions;
  • Dow’s Pharma and Food Solutions;
  • Dow’s Microbial Control;
  • DuPont’s Performance Polymers; and
  • Several silicones-based businesses.

Based on the forecast for 2017, the businesses that will be switched to the Specialty Products Division have totaled net sales of more than $8 billion, along with operating EBITDA of around $2.4 billion, which includes 40 percent of the heritage Dow Corning EBITDA.

The adjustments to the original merger include: around $4 billion of net sales from the heritage Dow portfolio will be evenly split between Consumer Solutions and Infrastructure Solutions, and approximately $4 billion of net sales from the heritage DuPont Performance Polymers business will move to the Specialty Products segment.

Dow scientist

Units including Dow Building Solutions, DuPont's Performance Polymers and several silicones-based businesses will now be part of the Specialty Products division.

“Our DowDuPont Board is fully aligned and confident that these targeted portfolio adjustments are the right actions to take and will benefit all stakeholders over the long term,” said Andrew Liveris, executive chairman of DowDuPont, in a statement.

Ed Breen, chief executive officer of DowDuPont, noted that these changes will enhance competitiveness and value creation.

“The facts clearly supported the strategic logic of this portfolio configuration," Breen said. "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.”

Company Alignments

Following the adjustments and realignments, the resulting companies are as follows:

  • The Agriculture Company, to be headquartered in Wilmington, Delaware, incorporates DuPont Pioneer, DuPont Crop Protection and Dow AgroSciences, with a portfolio that includes seeds, traits, crop chemicals and other solutions;
  • The Materials Science Company will maintain the Dow brand and be headquartered in Midland, Michigan, and will comprise Performance Materials & Coatings, Industrial Intermediates & Infrastructure and Packaging & Specialty Plastics; and
  • The Specialty Products Company will be headquartered in Wilmington, Delaware, as well, and will consist of Electronics & Imaging, Transportation & Advanced Polymers, Safety & Construction and Nutrition & Biosciences. 

   

Tagged categories: Business matters; Coatings raw materials manufacturers; Dow Building Solutions; Dow Chemical Company; DowDuPont; DuPont; Mergers

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Mitsubishi Gas Chemical America
 
Performance Amine 1,3-BAC
 
A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.
 

 
Carboline Company
 
Carboline launches new website!
 
The completely revamped website, offers quick and easy access to essential product information and is now mobile-friendly.
 

 
Industrial Vacuum Equipment Corp.
 
Hurricane Vacuums
& Dust Collectors
 
Vacuum and dust collector hose, filters and related accessories.
IndustrialVacuum.com
 

 
SABRE Autonomous Solutions
 
Quality
 
The ALPHA1 provides a consistent finish day-in
day-out; job to job.
 

 
BASF
 
New resins from BASF will have metals loving water!
 
Excellent corrosion resistance, low VOC, high gloss, thin films www.basf.us/industrialcoatings dpsolutions@basf.com 800-231-7868
 

 
HoldTight Solutions Inc.
 
NO FLASH RUST - NO CONTAMINANTS
 
Our HoldTight®102 salt remover & flash rust
preventer prevents flash
rust by removing surface contaminants. Contact us
for your nearest distributor.
(800) 319.8802 sales@holdtight.com
 

 
Tarps manufacturing, Inc.
 
QUALITY MADE IN AMERICA —Available near you!
 
CLICK to get a behind-the-scenes look at how Tarps Manufacturing makes the highest-quality tarps right here in the USA — available nationwide.
 

 
Jotun Paints Inc.
 
Jotun Jotachar 1709
 
Mesh-free passive fire protection epoxy designed to protect against hydrocarbon pool fire scenarios for up to four hours as defined in the ANSI/UL1709 standard.
 

 
NLB Corporation
 
NLB Sure Shroud: Greater Protection and Flexibility
 
NLB’s Sure Shroud’s lighter weight and flexibility reduces operator fatigue and offers unmatched protection against high pressure hose ruptures. 10k to 40k psi rated.
 

 
Vector Technologies Ltd.
 
The Original Performance Proven Vacuum Solutions
 
VecLoader® 616 Double Dump, Continuous Vacuum, 170 HP w/ 2,400 CFM & 28” Hg. 33% More Efficient than traditional vacuum systems! Choose Vector for the most powerful and the most reliable trailer mounted vacuums in the industry! Email us at: inquiry@vector-vacuums.com or call us at: 800-832-4010
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy Policy   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us