DuPont to get out of textiles by year-end 2003
Called DuPont Textiles & Interiors, the new division will include the nylon fibres, polyester fibres and Lycra brand fibre businesses, creating the world’s largest integrated textile fibres group with annual sales of $6.5 billion. This represents about 23 percent of 2001 total DuPont Company segment sales. The company says it will consider a full range of options for the spin-off, including an Initial Public Offering (IPO), with the ultimate intention of separation by year-end 2003, market conditions permitting. The company has engaged Morgan Stanley to assist in the evaluation process.
DuPont Textiles & Interiors will be led by DuPont Executive Vice President and Chief Operating Officer Richard R. Goodmanson and an experienced team including Group Vice Presidents Steven R. McCracken and George F. MacCormack.
The remaining core businesses will be organised into five division; electronics; performance chemicals and polymers; coatings and colour technologies; safety – including kevlar for bullet proof vests; and agriculture, which includes genetically modified seeds.
"A company can operate successfully for 200 years only by continually reinventing itself," DuPont Chairman and CEO Charles O. Holliday Jr. said. "Our nylon, polyester and Lycra businesses have played a very important role in DuPont for many decades. They have served our company, our shareholders and our customers extremely well. Now, with rapidly changing industry dynamics and tough market realities, we believe the course we have chosen is necessary to allow them to succeed in the future."
