news Dow and DuPont in giant merger
Dow Chemical and DuPont, the two largest chemicals companies in the US, have announced plans to merge to create a new company with a market capitalisation of about $130bn. The long-term plan for this “merger of equals” is to split the new entity into three businesses, by far the largest of which will be a material sciences firm. The all-stock merger is
expected to be completed in 18-24 months, subject to regulatory and board approval. “DowDuPont” will be based at the two companies’ existing headquarter sites at Midland, Michigan, and Wilmington, Delaware in the US. The new entity will be headed by Edward Breen, the newly appointed CEO of DuPont, while Andrew Liveris, CEO of Dow, will become chairman of the board and will also chair the advisory committee for the proposed material science company.
Edward Breen, CEO DuPont This new materials science
company, if created, will have sales of $51bn on a pro forma basis and will be based at Wilmington. It will comprise DuPont’s Performance Materials segment and the Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions and Consumer Solutions operating segments of Dow, other than the Electronic Materials business.
Andrew Liveris, CEO Dow According to DuPont and
Dow, the proposed firm will be “a low-cost, innovation-driven leader that can provide customers in high-growth, high-value industry segments in packaging, transportation, and infrastructure solutions, among others, with a broad and deep portfolio of cost- effective offerings”. The other two businesses will be a pure-play agriculture company and a speciality
B&P integrates Littleford Day
B&P Process Equipment’s Littleford Day business and technology centre is now up and running at its facility at Saginaw, Michigan, US. The Littleford Day industrial mixer,
dryer and reactor business was acquired by B&P in June last year and now operates as B&P Littleford Day. B&P says manufacturing and after-market service for Littleford Day products is now in place at the Saginaw site and part of its 1,500m2
technology demon-
stration and development centre has been dedicated to Littleford Day customers. “Littleford’s expertise in batch and
6 COMPOUNDING WORLD | January 2016
semi-continuous processing solutions meshes well with B&P’s expertise in continuous processing innovation,” said B&P President and CEO Larry Slovin. “The combined capabilities of Littleford and B&P will make us an even more powerful partner to help our customers meet their processing demands,” added Slovin.
B&P, the original manufacturer of
Baker Perkins Machinery, has also invested in new equipment and mod- ernisation of its facilities to accommo- date the testing of both Littleford and its own equipment. ❙
www.bpprocess.com
www.compoundingworld.com
products company, with respective combined sales of about $19bn and $13bn in 2014 respectively. “Each of the businesses will have clear focus, an appropriate capital structure, a distinct and compelling investment thesis, scale advantages and focused investments in innovation to better deliver superior solutions and choices for customers,” it is claimed. The deal is expected to yield some $3bn in cost synergies, according to the two compa- nies, with all of the run-rate cost synergies achieved within the first two years after closure. A further $1bn is expected from “growth synergies”. l On the same day that the merger plans were announced DuPont revealed it was embarking on a $700m global cost cutting programme that will result in a 10% headcount reduction during 2016. ❙
www.dupont.com ❙
www.dow.com
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