DuPont de Nemours Inc., a prominent chemicals and materials conglomerate, will spin off its water business as part of a comprehensive strategy to divide the company into three distinct entities, with the process expected to conclude by the spring of 2026.

The water treatment division, currently under DuPont’s umbrella, generated approximately $1.5 billion in sales last year, with operating EBITDA margins around 24%. This division includes renowned brands such as Amberlite, FilmTec, Fortilife, Integraflux, and TapTec, serving industrial, energy, life sciences, municipal, and consumer markets. Industrial and energy companies contribute to about half of its revenues, while the municipal/desalination and life sciences/specialty markets each account for roughly one-fifth of sales.

Ed Breen, DuPont’s executive chairman and CEO, stated, “This is an extraordinary opportunity to deliver long-term, sustainable shareholder value through the creation of three strong, industry-leading companies. Critically, each company will have greater flexibility to pursue their own focused growth strategies, including portfolio-enhancing M&A.”

The spinoff process is anticipated to span 18 to 24 months, incurring costs of approximately $700 million for DuPont. Additionally, the company plans to allocate around $60 million to establish separate management teams for each new entity.

As an independent company, DuPont’s water division—whose name and leadership team will be announced later—will compete with larger entities such as Xylem Inc. and Veralto Corp., which reported revenues of $7.4 billion and $5.0 billion in 2023, respectively. This revenue disparity led to several analyst inquiries during a May 23 conference call regarding a potential outright sale of DuPont’s water group. Breen noted that while the DuPont board did not explore a sales process alongside the three-way split, his team remains open to considering sales inquiries.

In addition to the water group spinoff, DuPont plans to separate its approximately $4 billion electronics division, which specializes in semiconductors, circuit boards, and heat management components. The restructuring plan will also establish a “New DuPont” focused on healthcare, advanced mobility, and safety/protection markets.