DuPont Performance Chemicals to be Called Chemours
DuPont has revealed more details of its planned spin-off of its Performance Chemicals business.
The Wilmington, Delaware-based US chemical group has filed a registration statement with the Securities & Exchange Commission for a new company, to be named Chemours.
The business will be spun off to DuPont shareholders and traded on the New York Stock Exchange.
DuPont said it is targeting a high-yield credit rating of "BB" and will spin off the activities with a "commensurate debt level."
The US group recently announced it would record a $315 million pretax charge during the 2014 fourth quarter as a part of its ongoing redesign program, which primarily aims at delivering near-term savings from the movement and elimination of costs related to the separation of its Performance Chemicals division.
During the first nine months of the year, the unit to become Chemours earned $430 million in pretax income on $4.9 billion in revenues. Its biggest unit, titanium dioxide, accounts for 46% of sales, fluoroproducts for 36% of sales. Other units include chemicals solutions, which has a major presence in sodium cyanide, sulfuric acid and aniline.
"DuPont and Chemours will each be global leaders, well positioned to pursue their respective objectives and strategies," said DuPont CEO Ellen J. Kullman.
According to the registration statement, the strategy of the spin-off with 91,000 employees will be to pursue organic growth, primarily through capacity expansions as well as penetrating developing markets.
