DuPont to Spin Off Performance Chemicals Business

DuPont (NYSE: DD  ) plans to hive off one of its product segments. The company announced that its board of directors has authorized the separation of the performance chemicals business, a move that was expected by some industry observers. The intention is to effect this via a spinoff to its shareholders in a tax-free transaction. The time frame for the divestment is roughly 18 months.

DuPont has a vision of the business as a prominent stand-alone entity complementing its former parent. In the press release heralding the news, the firm quoted CEO Ellen Kullman as saying that "this separation will advance the transformation of DuPont and result in two strong, highly competitive companies."

The spinoff of performance chemicals, which the company characterizes as its "latest portfolio enhancement," is the most recent in a series of moves begun in 2010 aimed at rationalizing its sprawling operations. Since that time, DuPont has acquired and divested a number of different assets.


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  • Report this Comment On October 24, 2013, at 8:37 PM, funfundvierzig wrote:

    Ms. Kullman, DuPont Chieftess apparently was unable to find a buyer for her sub-performing chemicals unit. Indeed, would-be buyers may have been scared off by the somewhat buried legal legacy of the Company's chemicals:

    * Pending in numerous federal and state courts are tens of thousands of claims for tree losses caused by DuPont's consumer product fraud, DuPont Imprelis, a dandelion lawn treatment masking an extremely efficacious toxic tree-killer. We believe those litigation settlement costs may ultimately top $2 billion or more!

    * Lurking are hundreds of $millions required to be expended for medical monitoring ($245 million) and the settlement of scores of individual lawsuits pertaining to DuPont's pollution and cover-up of the extraordinarily toxic, cancer-causing Teflon chemical, C8.

    * Nearly one-third of the new car market is now off-limits for the potentially explosive and dangerous DuPont Kullman Koolant (DuPont/Honeywell HFO-1234yf) for car A/C, as Daimler, VW, BMW, and Toyota reject this highly questionable refrigerant touted as "a great DuPont innovation" by DuPont's big bosses.

    * Latent environmental illegalities or safety dangers endemic to DuPont's run-down chemical plants, such as acid factories, which have been repeatedly cited over the years.

    * Unknown price-fixing, unlawful misconduct for which DuPont has a long documented history.

    Caveat Emptor. So now Ms. Kullman is compelled to ditch her disdained chemicals via a spin-off to DuPont's long-suffering shareholders.

    Merely the perspective of one individual retail investor...funfun..

  • Report this Comment On October 24, 2013, at 8:51 PM, nomofunfun wrote:

    DuPont shareholders get to OWN a 2nd chemical company. What's not to love here? Free shares of stock for everyone.

    Oops...what about that one guy who denigrates DuPont day and night for years? Did he dump all of his DD shares?

    I understand when people leave a company rather unplanned, especially in the case where an employee was involuntarily separated, and may be bitter and sell their shares at a low price. Too bad that happened to one guy. If he had held his shares, they'd be worth a crisp $62 AND he'd get free shares of the new company too.

    Wonder whatever happened to that guy?

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