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Monsanto spins off Solutia
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August 18, 1997: 1:22 p.m. ET
$3 billion chemicals business to become independent on Sept. 1
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NEW YORK (CNNfn) - Monsanto Co. said Monday it will spin off its $3 billion chemical business as an independent company, effective Monday, Sept. 1.
The plan was approved by shareholders at a special meeting at the company's headquarters in St. Louis, Mo. Monsanto's board last December approved the plan to split up the chemicals business from its $5 billion life sciences group -- a division responsible the wildly successful sugar substitute, aspartame (a.k.a. NutraSweet).
The chemicals business will be renamed Solutia Inc. and will trade separately on the New York Stock Exchange under the symbol SOI.
Solutia businesses include the home furnishing, automotive and construction materials markets. Products include man-made fibers, plastic interlayer for laminated glass, phosphorus-based food ingredients and performance products, high performance specialty chemicals, and chemicals intermediates.
Robert Potter, who has been acting chief executive of the chemical operations, will be chairman and chief executive of Solutia.
Solutia will own and operate 19 manufacturing plants worldwide located in 12 states and in Belgium, Canada and the U.K. At the time of the spinoff, Solutia will have about 8,800 employees worldwide.
The life sciences businesses will retain the Monsanto name. In addition to food additives, Monsanto's life sciences operations include agricultural biotechnology products and the pharmaceutical businesses.
"Even though the name Monsanto isn't new, the concept of a life sciences industry is," Chairman Robert Shapiro said in a statement. "We hope to capture the essence of our role in this emerging industry in our new positioning."
Last week, Monsanto said its directors voted a dividend of one share of common stock in Solutia for each five shares of Monsanto. The record date for the spinoff will be August 20.
-- from staff and wire reports
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