DuPont Re-Aligns; May Separate Textiles Division With IPO
April 24, 2002
Wilmington, DE (USA) - In the realignment of its businesses into five market- and technology-focused growth platforms DuPont has created a textiles and interiors subsidiary. The new wholly owned subsidiary, called DuPont Textiles & Interiors, will include nylon fibers, polyester fibers and Lycra® brand fiber businesses, plus their intermediates and joint ventures. DuPont has also added its flooring operations to this division.
DuPont is said to be considering an initial public offering (IPO) for DuPont Textiles & Interiors with the ultimate intent of separation by year-end 2003.
Morgan Stanley will assist in the valuation process.
DuPont Textiles and Interiors will be led by DuPont executive vice president and chief operating officer Richard Goodmanson and an experienced team including group vice presidents Steve McCracken and George MacCormack.
"We will become the largest player in the worldwide textile and interiors business with a portfolio of brands that is second to none, and it will enjoy the number one position in the six markets that comprise 75 percent of its revenue," said Goodmanson. "This new subsidiary will focus on innovation, research and development, cost efficiencies, manufacturing efficiencies and responsiveness to our customers around the world. We are wholly committed to making this company the model for the future."
The new company will have the largest Research & Development budget in its industry with approximately $170 million earmarked for product and process innovation in 2002. DuPont plans to offset all residual costs from the separation of the DuPont Textiles & Interiors subsidiary by reducing its cost structure for corporate and support services. The growth platforms are: DuPont Electronic & Communication Technologies; DuPont Performance Materials; DuPont Coatings & Color Technologies; DuPont Safety & Protection; and DuPont Agriculture & Nutrition.F&FI
DuPont is said to be considering an initial public offering (IPO) for DuPont Textiles & Interiors with the ultimate intent of separation by year-end 2003.
Morgan Stanley will assist in the valuation process.
DuPont Textiles and Interiors will be led by DuPont executive vice president and chief operating officer Richard Goodmanson and an experienced team including group vice presidents Steve McCracken and George MacCormack.
"We will become the largest player in the worldwide textile and interiors business with a portfolio of brands that is second to none, and it will enjoy the number one position in the six markets that comprise 75 percent of its revenue," said Goodmanson. "This new subsidiary will focus on innovation, research and development, cost efficiencies, manufacturing efficiencies and responsiveness to our customers around the world. We are wholly committed to making this company the model for the future."
The new company will have the largest Research & Development budget in its industry with approximately $170 million earmarked for product and process innovation in 2002. DuPont plans to offset all residual costs from the separation of the DuPont Textiles & Interiors subsidiary by reducing its cost structure for corporate and support services. The growth platforms are: DuPont Electronic & Communication Technologies; DuPont Performance Materials; DuPont Coatings & Color Technologies; DuPont Safety & Protection; and DuPont Agriculture & Nutrition.F&FI
