Air Products and Chemicals has announced it will spin off its materials technologies business into a publicly traded company following a strategic review. The move, which is targeted for completion before September next year, will leave Air Products with its industrial gases business.

“This separation will provide shareholders ownership in two leading and focused companies while providing the opportunity to value our industrial gases and materials technologies businesses independently. We believe a tax-free spin-off of the materials technologies business will create significant shareholder value,” said Seifi Ghasemi, chairman, president and CEO of Air Products.

Guillermo Novo, executive vice president, materials technologies, will be CEO of the new and yet-to-be-named company, while Ghasemi will be the non-executive chairman in addition to maintaining his current roles at Air Products.

The company said the decision will allow both businesses to leverage their respective critical competencies and enhance their competitive positions. “It will allow us to take another step in pursuit of our ultimate goal, to become the safest and most profitable industrial gas company in the world,” Ghasemi said.