Neville Prior

DuPont Names Spin-Out

Neville Prior  9 January 2015 08:43:24 PM
Image:DuPont Names Spin-Out
DuPont is to separate out its Performance Chemicals segment and has filed both initial Form 10 registration statement with the US Securities & Exchange Commission and a Form 8-K/A with an update related to the process. The new company will be called Chemours, which is based on the whole company’s heritage in chemistry and the DuPont family’s origins in Nemours in France.

Chemours will be headed by current DuPont EVP Mark Vergnano as president and CEO, with Mark Newman as CFO. It will have two main businesses: Titanium Technologies in TiO2 under B.C. Chong and Fluoroproducts under Thierry Vanlancker, plus the smaller Chemical Solutions under Christian Siemer. It will have about 9,100 employees at 37 production facilities in 12 countries.

DuPont chair and CEO Ellen Kullman said that the separation will create “two strong, publicly traded companies with distinct value creation strategies”. Each, she added, will be a global leader and both will be “well positioned to pursue their respective objectives and strategies”. Chemours will apply for listing at the New York Stock Exchange under the ticker symbol ‘CC’. The separation should be completed by mid-2015.

DuPont added that the change is expected to contribute at least $1 billion in savings. To pay for it, the company will record a pre-tax charge to earnings of about $315 million in Q4 2014, comprising of about $160 million in employee separation costs, $140 million in asset-related charges and $15 million of contract termination costs. This is all expected to be complete by mid-2016.

Chemours, it was subsequently announced will be headquartered at the current DuPont head office in central Wilmington, Delaware, with its staff moving in by the middle of 2015, in order to bring them all together in one place to create a corporate identity. This followed a review of the separation of assets and real estate associated with the split. A decision on the long-term base has not yet been reached.

The remaining part of DuPoint will be consolidated at the Chestnut Run Plaza campus in New Castle county in the suburbs of Wilmington, near to both the DuPont Experimental Station and the Stine-Haskell Research Centre. The company has had operations hear for over 60 years and Kullmann said that this reorganisation “will make it possible to draw on people and knowledge across the company even more dynamically, on a daily basis.”
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