WILMINGTON, Del., Feb. 1, 2021 /PRNewswire/ -- DuPont
(NYSE:DD) announced it is completing today the merger of IFF and
Nutrition & Biosciences. In connection with the closing
of the transaction with IFF, DuPont receives a special cash payment
of about $7.3 billion, approximately
$5 billion of which will be used to
strengthen the balance sheet by retiring outstanding debt.
As a result of the merger completion, DuPont will move forward
with a sharpened strategic focus and is making certain targeted
adjustments to its reporting structure. Effective
February 1, 2021, DuPont will have
three business reporting segments: Electronics & Industrial,
Mobility & Materials, and Water & Protection. Each will
house market-leading businesses with deep expertise, differentiated
products and technologies, and the capabilities necessary to win
with customers, outperform their peers, and deliver shareholder
value.
Ed Breen, DuPont Executive
Chairman and Chief Executive Officer, stated, "We enter 2021 in a
position of strength. DuPont today is a premier multi-industrial
company, well equipped to drive organic growth and expand our
businesses through select and targeted M&A. We have the right
businesses, products and structure to meet the needs of our
customers and capitalize on significant growth trends in our chosen
end-markets. Our new structure combines businesses with common
financial characteristics, enabling clear line of sight and more
effective allocation of resources across the company. Each has a
meaningful growth profile, with a management team that understands
how to best execute on its priorities and deliver for
shareholders."
DuPont also announced it has concluded the strategic review of
its Non-Core businesses. In connection with this move, the
company announced it has entered into a definitive agreement with
an international private equity consortium to sell the DuPont Clean
Technologies business for $510
million. The transaction is expected to close in the second
quarter of 2021, subject to customary closing conditions and
regulatory approvals. Additionally, DuPont has concluded that it is
in the best position to drive value for Tedlar®, Microcircuit
Materials and the DuPont Teijin Films JV and has realigned these
businesses to Mobility & Materials. With the announced
agreements relating to Biomaterials and Clean Technologies,
effective February 1, 2021, DuPont
will dissolve its Non-Core reporting segment.
Breen continued, "I salute our employees who have demonstrated
their resolve through a long period of transition and ongoing
challenges of the pandemic. Their emphasis on our Core Values, and
support of our customers and each other, has helped build the
strong foundation we stand on today, poised to grow as the global
economy moves toward recovery."
An overview of the updated reporting segments, including lines
of businesses and portfolio adjustments, can be found here. The
company will provide additional details on the segments during its
4Q 2020 earnings webcast with investors on February 9, 2021.
About DuPont
DuPont (NYSE: DD) is a global innovation leader with
technology-based materials, ingredients and solutions that help
transform industries and everyday life. Our employees apply diverse
science and expertise to help customers advance their best ideas
and deliver essential innovations in key markets including
electronics, transportation, construction, water, health and
wellness, food and worker safety. More information about the
company, its businesses and solutions can be found at
www.dupont.com. Investors can access information included on the
Investor Relations section of the website at
investors.dupont.com.
DuPont™, the DuPont Oval Logo, and all trademarks and service
marks denoted with ™, SM or ® are owned by
affiliates of DuPont de Nemours, Inc. unless otherwise noted.
About Nutrition & Biosciences
Nutrition & Biosciences applies expert science to advance
market-driven, healthy and sustainable solutions for the food,
beverage, dietary supplement and pharmaceutical industries. We also
use cutting-edge biotechnology across a range of markets to advance
bio-based solutions to meet the needs of a growing population,
while protecting our environment for future generations. We are
innovative solvers who help our customers turn challenges into
high-value business opportunities.
Cautionary Notes on Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the federal securities laws, including
Section 27A of the Securities Act, and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
In this context, forward-looking statements often address expected
future business and financial performance and financial condition,
and often contain words such as "expect," "anticipate," "intend,"
"plan," "believe," "seek," "see," "will," "would," "target,"
similar expressions, and variations or negatives of these words.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as statements about the
transaction, the benefits and synergies of the transaction, future
opportunities for the combined company and products, the benefits
of the proposed organizational and operating model of the combined
company and any other statements regarding DuPont's, IFF's and
N&B's future operations, financial or operating results,
capital allocation, dividend policy, debt ratio, anticipated
business levels, future earnings, planned activities, anticipated
growth, market opportunities, strategies, competitions, and other
expectations and targets for future periods. There are several
factors which could cause actual plans and results to differ
materially from those expressed or implied in forward-looking
statements. Such factors include, but are not limited to,
(1) the parties' ability to meet expectations regarding the
accounting and tax treatments of the transaction, (2) changes
in relevant tax and other laws, (3) the possibility that
unforeseen liabilities, future capital expenditures, revenues,
expenses, earnings, synergies, economic performance, indebtedness,
financial condition, losses, future prospects, business and
management strategies that could impact the value of the
transaction, (4) risks and costs related to the distribution of
Corteva Inc. on June 1, 2019 (the
"Corteva Distribution") and the distribution of Dow Inc. on
April 1, 2019 (the "Dow Distribution"
and together with the Corteva Distribution the "Previous
Distributions") including indemnification of certain legacy
liabilities of E. I. du Pont de Nemours and Company ("Historical
EID"), a subsidiary of Corteva, in connection with the Corteva
Distribution and potential liability arising from fraudulent
conveyance and similar laws in connection with the Previous
Distributions, (5) risks and costs related to the performance under
and impact of the cost sharing arrangement by and between DuPont,
Corteva, Inc. and The Chemours Company related to future eligible
PFAS liabilities, (6) failure to effectively manage acquisitions,
divestitures, alliances, joint ventures and other portfolio
changes, including meeting conditions under the Letter Agreement
entered in connection with the Corteva Distribution, related to the
transfer of certain levels of assets and businesses,
(7) uncertainty as to the long-term value of DuPont common
stock, (8) potential inability or reduced access to the
capital markets or increased cost of borrowings, including as a
result of a credit rating downgrade, (9) inherent
uncertainties involved in the estimates and judgments used in the
preparation of financial statements and the providing of estimates
of financial measures, in accordance with the accounting principles
generally accepted in the United States
of America and related standards, or on an adjusted basis,
(10) the integration of IFF and its Frutarom business and/or
N&B being more difficult, time consuming or costly than
expected, (11) the failure to achieve expected or targeted
future financial and operating performance and results,
(12) the possibility that IFF may be unable to achieve
expected benefits, synergies and operating efficiencies in
connection with the transaction within the expected time
frames or at all or to successfully integrate Frutarom and N&B,
(13) customer loss and business disruption being greater than
expected following the transaction, (14) legislative,
regulatory and economic developments; (15) an increase or
decrease in the anticipated transaction taxes (including due to any
changes to tax legislation and its impact on tax rates (and the
timing of the effectiveness of any such changes)),
(16) potential litigation relating to the transaction that
could be instituted against DuPont, IFF or their respective
directors, (17) risks associated with third party contracts
containing consent and/or other provisions that may be triggered by
the transaction, (18) negative effects of the consummation of
the transaction on the market price of DuPont's and/or IFF's common
stock, (19) risks relating to the value of the IFF shares to
be issued in the transaction and uncertainty as to the long-term
value of IFF's common stock, (20) the impact of the failure to
comply with U.S. or foreign anti-corruption and anti-bribery laws
and regulations, (21) the ability of N&B or IFF to retain
and hire key personnel, (26) the risk that N&B and IFF
will incur significant indebtedness in connection with the
transaction, and the degree to which IFF will be leveraged
following completion of the transaction may materially and
adversely affect its business, financial condition and results of
operations, (23) that N&B may not achieve certain targeted cost
and productivity improvements, which could adversely impact its
results of operations and financial condition, and (24) other
risks to DuPont's, N&B's and IFF's business, operations and
results of operations including from: failure to develop and market
new products and optimally manage product life cycles; ability,
cost and impact on business operations, including the supply chain,
of responding to changes in market acceptance, rules, regulations
and policies and failure to respond to such changes; outcome of
significant litigation, environmental matters and other commitments
and contingencies; failure to appropriately manage process safety
and product stewardship issues; global economic and capital market
conditions, including the continued availability of capital and
financing, as well as inflation, interest and currency exchange
rates; changes in political conditions, including tariffs, trade
disputes and retaliatory actions; impairment of goodwill or
intangible assets; the availability of and fluctuations in the cost
of energy and raw materials; business or supply disruption,
including in connection with the Previous Distributions; security
threats, such as acts of sabotage, terrorism or war, natural
disasters and weather events and patterns, disasters, public health
issues, epidemics and pandemics, including COVID-19, or the fear of
such events, and the inherent unpredictability, duration and
severity of such events, which could result in a significant
operational event for DuPont, N&B or IFF, adversely impact
demand or production; ability to discover, develop and protect new
technologies and to protect and enforce DuPont's, N&B's or
IFF's intellectual property rights;, as well as management's
response to any of the aforementioned factors. These risks, as well
as other risks associated with the merger, are more fully discussed
in the registration statement and proxy statement filed by IFF
and the registration statement filed by N&B. While the list of
factors presented here is, and the list of factors presented in
registration statements filed by each of IFF and N&B in
connection with the transaction, are considered representative, no
such list should be considered to be a complete statement of all
potential risks and uncertainties. Unlisted factors may present
significant additional obstacles to the realization of
forward-looking statements. Further lists and descriptions of risks
and uncertainties can be found in IFF's annual report on Form 10-K
for the year ended December 31, 2019,
DuPont's annual report on Form 10-K for the year ended December 31, 2019, and each of IFF's and DuPont's
respective subsequent reports on
Form 10-Q, Form 10-K and
Form 8-K, the contents of which are not incorporated by
reference into, nor do they form part of, this announcement. Any
other risks associated with the transaction are more fully
discussed in the registration statements filed with the SEC. While
the list of factors presented here is, and the list of factors
presented in the registration statements, as amended, filed by each
of IFF or N&B are representative, no such list should be
considered to be a complete statement of all potential risks and
uncertainties. Unlisted factors may present significant additional
obstacles to the realization of forward-looking statements.
Consequences of material differences in results as compared with
those anticipated in the forward-looking statements could include,
among other things, business disruption, operational problems,
financial loss, legal liability to third parties and similar risks,
any of which could have a material adverse effect on IFF's,
DuPont's or N&B's consolidated financial condition, results of
operations, credit rating or liquidity. None of IFF, DuPont nor
N&B assumes any obligation to publicly provide revisions or
updates to any forward-looking statements, whether as a result of
new information, future developments or otherwise, should
circumstances change, except as otherwise required by securities
and other applicable laws.
Additional Information About the Transaction and Where to
Find It
This communication is not intended to and shall not constitute
an offer to sell or the solicitation of an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote of approval, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended (the "Securities Act"). In connection with the
transaction, N&B has filed a registration statement on Form
S-4/S-1 containing a prospectus, dated December 31, 2020, IFF has filed a registration
statement on Form S-4 containing a prospectus, dated December 31, 2020 (together, the "registration
statements"), and DuPont has filed a Schedule TO with the SEC.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION
STATEMENTS, DUPONT'S SCHEDULE TO AND ANY AMENDMENTS OR SUPPLEMENTS
TO THESE FILINGS AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED OR
TO BE FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT N&B, IFF AND DUPONT
AND THE TRANSACTION. The registration statements, DuPont's
Schedule TO and other documents relating to the transaction (when
they become available) can also be obtained free of charge from the
SEC's website at www.sec.gov. These documents and each of the
companies' other filings with the SEC (when available) can also be
obtained free of charge, with respect to DuPont and N&B, upon
written request to Georgeson LLC, at 1290 Avenue of the Americas,
9th Floor, New York, NY 10104, or
by telephone at 888-660-8331, or, with respect to IFF, upon written
request to International Flavors & Fragrances Inc. investor
relations at 521 West 57th Street, New
York, New York 10019 or by calling (212) 708-7164.
In addition, for any questions about the exchange offer
generally you may contact the information agent, Georgeson LLC, at
888-660-8331.
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SOURCE DuPont