On May 3, Orica announced that it intended to proceed with its demerger of DuluxGroup to create separate, ASX-listed companies. The demerger is expected to go ahead in July 2010, subject to shareholder and court approvals. “The quality of both DuluxGroup and the core Orica business is evident in Orica’s financial performance and it would be a natural evolution of Orica’s strategy to create two even better companies, each free to capitalise on its strategic strengths: Orica largely as a global leader in mining consumables and services leveraged to mining production volumes; and Dulux as the Australasian market leader in premium branded coatings, home improvement and garden care products,” Orica Chairman Peter Duncan said.
“DuluxGroup has improved earnings, through some reasonably tough market conditions, demonstrating its resilience through the economic cycle. “Its market leadership is driven by core strengths of: excellent customer relationships; leading distribution channels; technical leadership through continued investment in research and new product development; and a very experienced management team.”
Patrick Houlihan will continue as Managing Director and CEO of DuluxGroup, with current CFO Stuart Boxer also being appointed as an executive director. DuluxGroup brands include Dulux, Cabot’s, Selleys and Yates.