DuPont may sell performance chemicals arm
25 Jul 2013
US giant DuPont yesterday announced it was consider the sale or spinning-off of all or part of its performance chemicals division.
It said it was considering the move in order to focus on developing “differentiated, high-value solutions in the attractive agriculture and nutrition, industrial biosciences and advanced materials markets worldwide”.
DuPont’s performance chemicals arm includes brands such as Teflon and its Titanium Technologies and Chemicals & Fluoroproducts businesses, which generated total sales of $7.2 billion in 2012.
We have been carefully weighing the strong cash generation of our performance chemicals businesses against their cyclicality and lower growth profile
DuPont CEO Ellen Kullman
A spokesman for the company said its consideration of strategic alternatives for its performance chemical segment may include a full or partial separation of each of these businesses from the company through a spin-off, sale or other transaction.
This proposed move follows DuPont’s sale of its performance coatings business to the Carlyle Group for $4.9 billion in February.
“As we discussed at our Investors Day in May, we have been carefully weighing the strong cash generation of our performance chemicals businesses against their cyclicality and lower growth profile, as well as where the power of DuPont’s integrated science can be differentiated,” said DuPont CEO Ellen Kullman.
“We are evaluating options for our performance chemicals businesses as part of our ongoing plan to deliver higher growth and greater value creation for our shareholders.”
