Corteva Agriscience splitting into 2 separate companies

INDIANAPOLIS — Corteva Agriscience, a farm technology company based in Indianapolis, is splitting into two separate entities.

Corteva’s planned split is expected to be finalized in the second half of 2026. The two new companies created from the split will be known as SpinCo and New Corteva.

Corteva has indicated that it hopes the split will qualify as a federal tax-free transaction for its shareholders. The company indicated that the move is contingent upon final approval from its board of directors and “receipt of favorable opinion of legal counsel with respect to the tax-free nature of the transaction for U.S. federal tax purposes.”

In a press release, Corteva listed numerous reasons it intends to split. Chief among those is “stronger strategic and operational focus.”

Corteva also reported that the separation will make the two new companies more flexible and adaptable. According to Corteva, the split will create “distinct investment profiles that unlock greater value for shareholders over time.”

Once the split is complete, New Corteva will focus on agriculture technology and SpinCo will operate as a seed business. SpinCo will be the home to the Pioneer seed brand and subsidiary brands like Dairyland Seed.

The parts of Corteva’s current business that will ultimately become New Corteva are expected to account for 44% of Corteva’s net sales in 2025. That means, if New Corteva were a standalone company this year, it would have generated $7.8 billion in sales.

The parts of Corteva’s business that will become SpinCo are estimated to account for 56% of Corteva’s net sales in 2025. That means SpinCo would have generated $9.9 billion in sales this year if it was its own, separate company.

“Over the past six years, we have taken deliberate steps to build a strong, successful technology company: we simplified our portfolio, reduced cost, invested in high-return endeavors and ensured our pipeline would maximize impact to farmers and returns to the company,” Corteva CEO Chuck Magro wrote in a prepared statement. “As a result, Corteva has become the clear industry leader, with market-leading positions in both crop protection and seed. As we look to the future, we want to best position both businesses to win in their respective markets and accelerate value for shareholders.

“The seed and crop protection markets have evolved, and as a result, we see the opportunities ahead for both companies diverging — this is the right time to act to stay ahead of the market. This separation will allow both businesses to maximize long-term value creation by focusing on their own priorities.  As such, we see this separation as the logical next step in their growth trajectory.”

Lazard and Morgan Stanley & Company are serving as Corteva’s financial advisors for the split. Corteva’s legal counsel for the split is Swaine and Moore LLP.