Corteva completes seed splitting and crop protection

Corteva recently announced the completion of the spin-off of its seed business. The operation made Vylor Inc. an independent company, whose shares are expected to begin trading today on the New York Stock Exchange. The new company brings together the seed business, while Corteva remains linked to crop protection operations. Vylor has adopted the ticker symbol VYLR for trading its shares.

The separation occurred through the proportional distribution of all Vylor's common shares to Corteva's shareholders. The transaction considered investors registered at the end of the day on September 24, 2026. After the distribution, Vylor ceased to be a wholly owned subsidiary and began operating as an independent publicly traded company.

The move concludes the process announced by Corteva to split its operations into two publicly traded companies. According to documents filed with the Securities and Exchange Commission, the resulting structure separates the current crop protection business from the seed business. The latter will now belong to Vylor.

Corteva's situation

With the split, Corteva will now present itself as a global company dedicated exclusively to crop protection, under the leadership of Luke Kissam, former chairman and CEO of Albemarle. "This is a new day for Corteva, and we couldn't be more excited to move forward with greater focus, agility, and a renewed commitment to innovation and operational excellence," Kissam said in a statement.

According to the company, revenue from its crop protection business grew by more than US$1 billion between 2020 and 2025, while the segment's operating EBITDA margin increased by approximately 2,5 percentage points. Differentiated technologies, including a platform of biologicals and natural products, now account for about 65% of sales. The company has nearly 9 employees and serves growers in approximately 110 countries.

Vylor's situation

Headquartered in Johnston, Iowa, Vylor will now be led by Chuck Magro, formerly CEO of Corteva. "Our ambition is to work with farmers of all sizes to solve some of the world's toughest challenges, from food security to energy security," Magro said in a statement. The company projects net sales between US$11,2 billion and US$11,9 billion in 2029, representing annual growth of 3% to 4% over the period, and operating EBITDA between US$3,3 billion and US$3,7 billion. In 2025, the seed business totaled US$9,9 billion in net sales.

Vylor anticipates launching 12 technology platforms for corn, soybeans, and wheat in the next decade. Among them is a soybean platform for Latin America that, according to the company, will offer the broadest spectrum of insect control on the market. For corn, launches begin in 2028 and include a trait aimed at increasing crop productivity and stability. In field tests conducted by the company in the Americas, the average gain was three bushels per acre, approximately three sacks per hectare. The company also expects to generate more than US$500 million in gross licensing revenue by 2027, a figure that should exceed US$1 billion by 2035 and approach US$2 billion by 2040.

Financial transaction

The reorganization also involved a financial transaction related to the debts of EIDP, a wholly-owned subsidiary of Corteva. Prior to the completion of the separation, Vylor conducted private offers to exchange three series of senior bonds issued by EIDP. The company also solicited consent from the holders for changes to contracts related to these bonds. The offer deadline was 17 p.m. New York time on September 30.

In the series maturing in 2030 with an interest rate of 2,300% per year, investors submitted bonds for exchange with a principal of US$434,841 million. This amount corresponded to 86,97% of the US$500 million in circulation. In the series maturing in 2032 with an interest rate of 5,125%, subscriptions reached US$476,214 million, equivalent to 95,24% of the US$500 million in circulation. For the bonds maturing in 2033 with an interest rate of 4,800%, the volume delivered reached US$527,584 million. This value represented 87,93% of the US$600 million in circulation.

Payment dates

The new Vylor bonds maintain the same interest payment dates, fees, and maturities as the corresponding series issued by EIDP. Eligible investors with valid enrollment by the early deadline, which ended on August 19, receive an equal principal amount in Vylor bonds and a cash portion. This portion amounts to approximately US$2,90 for every US$1.000 in the 2030 series, US$2,67 in the 2032 series, and US$2,86 in the 2033 series.

Holders who opt in after the early deadline and up to September 30th will receive $970 in Vylor bond principal for every $1.000 in principal of the corresponding EIDP bonds. This group will not receive the additional cash portion. Accepted bondholders will also receive accrued and unpaid interest between the last applicable payment date and the settlement date, excluding the settlement date itself.

The exchange of securities depended, among other conditions, on the completion of the separation between the businesses. At the close of the offers, all conditions had already been met, except for the completion of the corporate reorganization. The document estimated that the settlement of the financial transaction would occur almost simultaneously with the separation, scheduled for October 1st.

Corteva informed the SEC of the formal completion of the transaction in a report filed on October 1st. The document records the distribution of Vylor's shares and the expected commencement of regular trading of the new company's shares on the New York Stock Exchange on the same date.