U.S.: Dow, DuPont announce Delaware HQ for combined ag business
DuPont (NYSE: DD) and the Dow Chemical Company (NYSE: DOW) have detailed the U.S. site structure of three independent entities to be spun off as part of their merger.
The group's agriculture company will have its corporate headquarters in Wilmington, Delaware, but prior to the separation the group will be dual headquartered with an office in Midland, Michigan.
The agriculture company from the formation of DowDuPont will feature the Dow name, while the other independent businesses will include a material science company, also named Dow, and a special products company.
Sites in Johnston, Iowa and Indianapolis, Indiana will serve as global business centers.
"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," said DuPont CEO Edward D. Breen.
"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."
The group said the agriculture company's structure was specifically developed to ensure the cost discipline and efficiency necessary to achieve the previously stated US$1.3 billion in synergies, while establishing the strongest foundation possible for sustainable growth over the long-term.
The companies expect the creation of this independent company will help consolidate their capabilities across seed and crop protection in three primary locations.
"The proposed combination of Dow's and DuPont's agricultural businesses will create a U.S.-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 Dow CEO Andrew N. Liveris.
"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.
"Both companies have highly respected brands in the agriculture industry, such as Pioneer and Mycogen, which we will continue to build and leverage. Going forward, we will be better equipped to meet and exceed grower expectations for innovation in crop technology and agricultural services."
Both parties continue to plan for the closing of the transaction during the second half of 2016.