In a transaction that will be tax free for shareholders, W.R. Grace plans to split into two companies. The move comes a year after the specialty chemical producer emerged from one of the longest bankruptcies, in US history,which was punctuated by protracted negotiations with creditors to settle claims related to asbestos.

Gracwfiled for Chapter 11 protection in 2001 after a slew of lawsuits related to asbestos used in its products. Grace hopes the the split will improve its strategic focus, simplify operations and allow for better use of capital.

One of the new companies, to be headed by Grace's current chairman and CEO Fred Festa, will consist of businesses with sales of $1.8 billion and activities in petrochemicals, personal care and rubber. The other will comprise Grace's specialty construction chemicals and specialty building materials unit, and have sales of about $1.5 billion.

"I also believe the split will open up opportunities around the materials space, around the silica space and other inorganic materials," Festa told journalists in a conference call.

The Grace CEO also reported better-than-expected fourth-quarter adjusted earnings, raised its forecast for 2015 earnings per share, and said it would buy back $500 million of shares.