When Dow Chemical and DuPont announced their plans to merger late in 2015, part of the plan involved breaking up the merged firm, now known as DowDuPont Inc. (NYSE: DWDP), into three separate companies. On Monday morning, the firm announced the executive leadership of two of the new firms.
Current CEO Ed Breen will assume the role of executive chair of DuPont, the company that is to be created out of the existing Specialty Products division. Marc Doyle, currently chief operating officer of the division will become the CEO. DowDuPont’s Agriculture division will get a new name, Corteva Agriscience, and be headed by James Collins Jr., currently the COO of the division.
DowDuPont already has announced that its Material Sciences division will be spun off into a third company to be called Dow, and will be headed by the division’s current COO, Jim Fitterling.
The spin-off of the Materials Sciences division is expected to be completed by April 1 and the other two spin-offs are expected to be done by June 1. All three are tax-free to investors.
DowDuPont CEO Breen said:
As we continue to make strong progress and build momentum toward the intended separations next year, we are pleased to announce the senior leadership teams that will take Corteva Agriscience and DuPont into the future. … Marc and Jim are highly qualified executives who have an unparalleled depth of knowledge and expertise in their respective businesses. I am confident they are the right leaders to drive each company forward and capitalize on the tremendous value creation opportunity ahead for all our stakeholders – including shareholders, customers, employees, and partners.
The boards of directors for all three companies are expected to be announced by the end of October.
Monday’s announcement had no effect on DowDuPont’s share price. The stock was inactive in the premarket, after closing down about 0.5% on Friday at $65.58, in a 52-week range of $61.27 to $77.08. The consensus price target on the stock is $82.00.