02.01.21
DuPont announced it is completing the merger of IFF and Nutrition & Biosciences.
In connection with the closing of the transaction with IFF, DuPont receives a special cash payment of about $7.3 billion, approximately $5 billion of which will be used to strengthen the balance sheet by retiring outstanding debt.
As a result of the merger completion, DuPont will move forward with a sharpened strategic focus and is making certain targeted adjustments to its reporting structure.
Effective Feb. 1, 2021, DuPont will have three business reporting segments: Electronics & Industrial, Mobility & Materials, and Water & Protection. Each will house market-leading businesses with deep expertise, differentiated products and technologies, and the capabilities necessary to win with customers, outperform their peers, and deliver shareholder value.
"We enter 2021 in a position of strength. DuPont today is a premier multi-industrial company, well equipped to drive organic growth and expand our businesses through select and targeted M&A. We have the right businesses, products and structure to meet the needs of our customers and capitalize on significant growth trends in our chosen end-markets," said Ed Breen, DuPont executive chairman and CEO. "Our new structure combines businesses with common financial characteristics, enabling clear line of sight and more effective allocation of resources across the company. Each has a meaningful growth profile, with a management team that understands how to best execute on its priorities and deliver for shareholders.”
DuPont also announced it has concluded the strategic review of its Non-Core businesses.
In connection with this move, the company announced it has entered into a definitive agreement with an international private equity consortium to sell the DuPont Clean Technologies business for $510 million.
The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions and regulatory approvals.
Additionally, DuPont has concluded that it is in the best position to drive value for Tedlar, Microcircuit Materials and the DuPont Teijin Films JV and has realigned these businesses to Mobility & Materials.
With the announced agreements relating to Biomaterials and Clean Technologies, effective Feb. 1, 2021, DuPont will dissolve its Non-Core reporting segment.
“I salute our employees who have demonstrated their resolve through a long period of transition and ongoing challenges of the pandemic. Their emphasis on our Core Values, and support of our customers and each other, has helped build the strong foundation we stand on today, poised to grow as the global economy moves toward recovery," Breen said.
