Chemical giant DuPont is heading towards some major changes. The company announced on Wednesday that it will be splitting into three separate companies while also replacing CEO Ed Breen.
According to DuPont’s announcement, its electronics and water units will become their own publicly traded companies while the remaining operations will focus on the biopharma and medical devices business. The goal of the split, which is expected to take place in the next 18 to 24 months, is to have smaller and more focused operations that would run more efficiently and boost the revenue.
DuPont also revealed that Chief Financial Officer Lori D. Koch will become the new CEO. Koch will assume the position on June 1, stepping in for Breen, who will transition to full-time Executive Chairman of the Board of Directors.
Breen, whose resume includes roles as director of Comcast and CEO of Tyco International, originally took over as CEO of DuPont in 2015. He left the company following the completion of the merger with Dow Chemical Company in 2017. Breen later returned to the position in 2020.
After the news went public, DuPont’s stock saw a significant jump in after-hours trading. The shares of the company rose 5.21% and traded at $82.64 per share at one point.