DuPont will no longer separate the water business, continues with the electronics spinoff Reuters writes
(Reuters) – Industrial materials maker DuPont ( NYSE: ) said on Wednesday it no longer intends to spin off its water business into a publicly traded company, but said it will continue to spin off its electronics business.
The decision comes months after the company revealed plans to split into three publicly traded companies, in a tax-free manner, to unlock value and pursue focused growth.
The company said it will accelerate the spin-off of its electronics business and expects to complete the transaction by Nov. 1. Last year, in May, DuPont said it could take up to 24 months to close the transaction.
DuPont’s electronics segment includes semiconductor technologies and interconnect solutions. The segment recorded net sales growth of 7.1% during the third quarter.
“The decision to keep (the water unit) with DuPont gives the new organization greater strategic flexibility over time and another high-growth business alongside healthcare,” said Chief Executive Officer Lori Koch, adding that 2025 is expected to be a strong year for segment of water. .
In 2015, DuPont merged with Dow in a $130 billion deal to create DowDuPont. Two years later, the company spun off its chemical businesses as Dow and the agribusiness division Corteva (NYSE: ), and DuPont continues as the company it is today.
Globally, several companies, including Maple Leaf Foods, have decided to split their operations into public companies in an attempt to increase profitability and revenue.
DuPont shares, which fell after Wednesday’s announcement, pared losses and were last up 1% at $77.00 in extended trading.
The company reaffirmed its annual adjusted earnings forecast of $3.90 per share and expects net sales of about $12.37 billion. It will announce its financial results on February 11.
