DuPont, Dow Set Wilmington as Ag Headquarters Following Merger
WILMINGTON, DE & MIDLAND, MI – DuPont and Dow Chemical Co. have shed further light on the structure of the global agricultural business both companies plan to spin off following their previously announced merger.
The independent agriculture company, one of three businesses to be spun off after completion of the merger, will be located in Wilmington, Delaware, and will feature DuPont in its name. Sites in Johnston, Iowa and Indianapolis, Indiana will serve as Global Business Centers, with leadership of business lines, business support functions, R&D, global supply chain, and sales and marketing capabilities concentrated in the two Midwest locations, according to a press release.
“This efficient structure takes full advantage of the unique expertise and resources that exist in each location, enabling us to deliver the long-term opportunity for the leading global Agriculture company we intend to create,” said Edward D. Breen, Chairman and CEO of DuPont. “Our deep presence in Iowa and Indiana will continue the close ties to our customer base and the broader Agriculture community, while leveraging the existing corporate infrastructure and expertise we have in Delaware – DuPont’s home for more than 200 years.”
The two other to-be spun-off businesses, a Material Science company and Specialty Products company, will be located in Midland, Michigan, and Wilmington, Delaware, respectively.
Both companies expect that the Agriculture business will achieve $1.3 billion in synergies.
“Today’s announcement is another step toward our creation of a leading global agriculture company. The intended Agriculture company will be highly focused, stronger, more competitive, more resilient, and better equipped to deliver growth and long-term, sustainable value than either DuPont or Dow could deliver on its own,” Breen continued. “Both companies have highly respected brands in the agriculture industry, such as Pioneer and Mycogen, which we will continue to build and leverage. Going forward, we will be better equipped to meet and exceed grower expectations for innovation in crop technology and agricultural services. We intend to bring a broader suite of products to the market, faster, to increase grower productivity and profitability.”
Andrew N. Liveris, Chairman and CEO of Dow, added, “The proposed combination of Dow’s and DuPont’s agricultural businesses will create a U.S.-based global leader with the scale and breadth necessary to deliver greater value and choice for growers worldwide and compete against the largest global competitors.”
“Combining each company’s strengths in science and R&D, with increased global market access, enables greater opportunity for innovative new solutions in both seed and crop protection. The headquarters location of the Agriculture company being announced as Wilmington, with global business centers in Indiana and Iowa, is consistent with the intended headquarters of the Material Science company, to be named Dow, being headquartered in Midland, Michigan, but having global business centers in other U.S. and global locations,” Liveris said.
Until the three independent businesses are spun-off, the merged company, DowDuPont, will be dual headquartered in Wilmington, Delaware and Midland, Michigan. The transaction is expected to close during the second half of 2016, subject to regulatory approval.
