February 24, 2016
DuPont, Dow announces headquarters for new agriculture company
DuPont and The Dow Chemical Company announced the establishing of a corporate headquarters for their independent agriculture company. This follows the successful agreement to both companies' landmark merger.
The development also comes in light of the planned separation of DowDuPont into three independent, publicly traded companies.
The corporate headquarters will be located in Wilmington, Delaware, US. It will include the office of the CEO and key corporate support functions.
Sites in Johnston, Iowa, and Indianapolis, Indiana, will serve as Global Business Centers. Leadership of business lines, business support functions, R&D, global supply chain, and sales and marketing capabilities will be concentrated in the two Midwest locations.
Additionally, the independent company will feature DuPont in its name, following completion of the corporate naming and branding process.
"Today's announcement is another step toward our creation of a leading global agriculture company. The intended 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," said Edward D. Breen, chairman and CEO of DuPont "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."
"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," Breen added.
The structure of the new company was specifically developed to ensure cost control and efficiency necessary to achieve the previously stated US$1.3 billion in synergies.
In the meantime, the companies sought to establish the strongest foundation possible for sustainable growth over the long term. This will in turn create long-term opportunities for the company's global employee base and local communities.
The structure also enables the new company to consolidate DuPont's and Dow's agriculture capabilities across seed and crop protection in three primary locations integral to achieving planned synergies.
The agriculture company will serve as a leading global organisation that unites the Seeds and Crop Protection businesses from DuPont and Dow.
The entity is expected to have the most comprehensive and diverse portfolio in the industry, It will also possess a robust pipeline with exceptional growth opportunities in the future.
Complementary offerings by the company will provide growers a broad portfolio of solutions and greater choice.
"We want to thank the leaders of each state for a highly constructive, cooperative process to achieve the best possible approach that leverages key advantages in each location," Breen commented. "As we advance plans for the intended merger, DuPont and the state of Delaware are committed to leveraging our respective science infrastructures and competencies to nurture the emerging science and technology innovation hub in the state."
"The proposed combination of Dow's and DuPont's agricultural businesses will create a US-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," said Andrew N. Liveris, chairman and CEO of Dow. "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.
Prior to its separation into three independent companies, DowDuPont will be dual-headquartered in Wilmington, Delaware, and Midland, Michigan.
Both parties continue to plan for the closing of transaction during the second half of 2016, subjected to satisfying the necessary closing conditions including obtaining the required pre-merger regulatory approvals.