===Corteva (CTVA) to separate into two industry-leading public companies

 

Corteva announces plan to separate into two industry-leading public companies; reaffirms FY25 guidance

• Co announces that its Board of Directors has unanimously approved a plan to separate the company into two independent, publicly traded companies, one comprising its current Crop Protection business and the other comprising its current Seed business.
• The separation will unleash two distinct market leaders, both farmer-centric, both with technology and innovation at their core and both with operating models and capital allocation priorities tailored to support their respective growth outlooks, strategic directions and value propositions. Upon separation, current Corteva Chair Greg Page will become Chair of New Corteva; current Corteva CEO Chuck Magro will become CEO of SpinCo. Full board and management teams of both companies will be announced at a later date, followed by other key information.
• New Corteva's partners will benefit from its focused, more optimized route to market. In addition, the company will be able to drive more effective channel management. New Corteva will also benefit from enhanced strategic flexibility, collaboration and partnership across the industry to drive efficiency and value.
• Through a focus on returns, targeted investment and operational excellence, New Corteva will help farmers solve some of their toughest challenges and continue to lead the industry in crop protection. 2025 net sales attributable to New Corteva are estimated to total $7.8 billion, representing 44% of net sales for Corteva.
• The separation is expected to be effected through a spin-off of SpinCo that is intended to qualify as a tax-free transaction for U.S. federal tax purposes to Corteva shareholders.
• The transaction is expected to be completed in the second half of 2026, subject to certain conditions, including, among others, obtaining ?nal approval by the Corteva Board of Directors, receipt of a favorable opinion of legal counsel with respect to the tax-free nature of the transaction for U.S. federal income tax purposes, and effectiveness of a Form 10 registration statement to be ?led with the U.S. Securities and Exchange Commission. Corteva may, at any time and for any reason until the proposed transaction is complete, abandon the separation or modify or change its terms.
• Full-year 2025 guidance reaffirmed; 2027 value framework intact. ]
  • Co reaffirms guidance for FY25 (Dec), sees EPS of $3.00-3.20 vs. $3.17 FactSet Consensus; sees FY25 (Dec) revs of $17.6-17.8 bln vs. $17.61 bln FactSet Consensus.