W.R. Grace Plans To Split In Two

W.R. Grace says it will break into two companies by separating its process catalysts and specialty silicas segments from its construction products and Darex packaging sealants businesses. The two companies would have had $1.8 billion and $1.5 billion in sales, respectively, last year. Grace executives say the split will create two firms with “improved strategic focus, simplified operating structures, and more efficient capital allocation.” Analysts point out that the construction business is closely tied to the ups and downs of the overall economy but say the inclusion of Darex adds value and cash flow stability.