DowDuPont (DWDP) said Tuesday that it will transfer businesses from its materials science division:to its specialty products division following a portfolio review.
The businesses to be transferred include Dow’s automotive systems’ adhesives and fluids platforms, building solutions business, water and process solutions business, pharma and food solutions business, and microbial control business as well as DuPont’s performance polymers business.
On a forecasted 2017 basis, the businesses that will be realigned account for total net sales of more than $8 billion and operating EBITDA of approximately $2.4 billion, DowDuPont said.
Following the realignment, the three intended companies of DowDuPont will include an agriculture company
headquartered in Wilmington, Delaware, with business centers in Johnston, Iowa, and Indianapolis, Indiana;
a materials science company maintaining the Dow brand and headquartered in Midland, Michigan; and a
specialty products company headquartered in Wilmington, Delaware.
DowDuPont reiterated its plans to achieve run-rate cost synergies of approximately $3 billion and approximately $1 billion in growth synergies.