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DuPont to Spin Off Performance Chemicals Segment

DuPont today advanced its transformation to a higher growth, higher value company as its Board of Directors authorized management to execute a full separation of its Performance Chemicals segment, which includes the Titanium Technologies and Chemicals & Fluoroproducts businesses.

DuPont intends to execute the separation through a tax-free spin-off to shareholders, subject to customary closing conditions. Upon completion of the separation in about 18 months, 100 percent of the new public entity will be owned by DuPont shareholders.

"Following a thorough strategic review process over the last year, the spin-off of Performance Chemicals is clearly the best option to deliver enhanced value for our shareholders. This separation will advance the transformation of DuPont and result in two strong, highly competitive companies," said DuPont Chair and CEO Ellen Kullman. "Our strategy is already delivering strong results. After separation, DuPont will have the optimum portfolio and will benefit from more consistent earnings growth and lower volatility, enhancing our ability to deliver more sustained growth and invest in future opportunities. Performance Chemicals will emerge as a top global industrial chemicals company with industry leading products and strong cash flow."

The Performance Chemicals spin-off is DuPont's latest portfolio enhancement guided by its strategic direction. Since 2010, DuPont has executed a number of acquisitions and divestitures – including acquiring Danisco, a leading food and biosciences business, while divesting its Performance Coatings segment earlier this year.

Kullman said both DuPont and Performance Chemicals have experienced and talented employees, and valuable customer and partner relationships worldwide. Each company will have a tailored capital structure that best supports its value creation plan, including capital allocation and credit profile. DuPont expects to enable both companies to pay dividends that in total equal DuPont's dividend at the time of separation. The company anticipates fourth quarter separation costs of $.01-.02 per share, which were not included in its third quarter 2013 earnings news release.

With an even clearer focus on science-driven growth, DuPont will advance its unique integrated capabilities in biology, chemistry and materials science to further strengthen its industry leading positions in agriculture and nutrition, bio-based industrials and advanced materials. Specifically, the company will continue to leverage its exceptional science capabilities across secular growth markets in food, energy, and protection, delivering shareholder value through revenue and earnings growth.

DuPont's Performance Chemicals segment will operate as an independent, publicly traded company after the separation. The new company will have world leading businesses in Titanium Technologies and Chemicals & Fluoroproducts, solid fundamentals, strong cash flow generation, and well established positions in attractive markets. The Performance Chemicals segment generated about $7 billion in 2012 revenues.

DuPont announced on July 23 that it would explore strategic alternatives for its Performance Chemicals businesses as part of an ongoing portfolio review to determine the optimal mix of businesses for maximizing shareholder value. Evercore and Goldman Sachs are strategic advisors on the separation.



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