FMP

FMP

Enter

DuPont (NYSE:DD) shares gained more than 5% pre-market today after the company announced its intention to split into three independent, publicly traded companie

DuPont to Split into Three Independent Companies, Shares Surge 5%

-

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

DuPont (NYSE:DD) shares gained more than 5% pre-market today after the company announced its intention to split into three independent, publicly traded companies focused on Electronics, Water, and a diversified industrial segment. The restructuring aims to increase shareholder value by enabling each new entity to focus on its specific market. The company stated that the separations are intended to be tax-free for DuPont shareholders.

The reorganization will result in New DuPont becoming a diversified industrial leader, while the Electronics and Water divisions will operate as separate companies, each with its own board and management team. New DuPont will retain its primary businesses, excluding Water Solutions, and will continue to apply its materials science expertise across sectors like healthcare and electric vehicles.

The new structure is designed to uphold high margins and strong cash flow, with financial policies similar to those of the current DuPont. The Electronics division, projected to have $4.0 billion in net sales and a 29% operating EBITDA margin in 2023, will concentrate on semiconductor solutions and advanced electronics products, benefiting from the expansion of high-performance computing, AI, and the Internet of Things. The Water division, specializing in water filtration and purification technologies, reported net sales of around $1.5 billion and a 24% operating EBITDA margin in 2023. It aims to boost earnings through ongoing investments and potential acquisitions.

DuPont expects to complete the separations within 18 to 24 months, subject to customary conditions and approvals, including those from DuPont's Board of Directors and regulatory authorities.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep