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Key Takeaways

• Chemicals and materials producer DuPont on Thursday changed plans to split into three separate businesses.

• The company said it would retain its Water segment, and expedite the spin-off of its Electronics unit.

• DuPont's initial plan mirrored similar moves by industrial conglomerates like GE and 3M.

Chemicals and materials producer DuPont (DD) on Thursday changed its plans to split into three separate companies.

The company said it would accelerate the spin-off of its Electronics business, and cancel plans to shed its Water division. The Electronics separation is now targeted for November 1 of this year.

The company followed in the footsteps of industrial conglomerates GE (GE) and 3M (MMM) when it announced last May that it would split into three separate companies over the following 18 to 24 months. At the time, then-CEO Ed Breen said the move would “unlock incremental value for shareholders and customers and also create new opportunities for employees.” He added that it would give each company “greater flexibility to pursue their own focused growth strategies,” including potential mergers and acquisitions.

DuPont on Thursday said it had “evaluated all strategic alternatives,” and determined that keeping its Water unit was the best way to generate value for the segment. Breen, now Executive Chairman, said DuPont remains “confident in the opportunity to create significant shareholder value through the separation of the Electronics business.”

Along with the spin-off update, DuPont reiterated its fourth-quarter and full-year guidance.

DuPont shares declined about 0.5% in intraday trading on Thursday but remained about 3% higher over the past year.

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