31 March 2017
DETAILS
DuPont (NYSE: DD) today announced
that it has entered into a definitive agreement with
FMC Corporation (NYSE: FMC)
to divest a portion of
DuPont’s Crop Protection business,
including certain
research and development capabilities, and
to acquire substantially all of
FMC’s Health & Nutrition business.
The transaction includes
consideration to DuPont of $1.6 billion
to reflect the difference in the value of the assets,
including cash of $1.2 billion
and working capital of $425 million.
The divestiture will satisfy
DuPont’s commitments
to the European Commission in connection
with its conditional regulatory clearance
of the merger with Dow.
Acquisition of FMC Health & Nutrition Business
As part of the transaction agreement,
DuPont will acquire
FMC’s Health & Nutrition business,
which generated more than $700 million
in revenues in 2016 from two main segments:
texturants as food ingredients and
pharmaceutical excipients.
The business is highly complementary to
DuPont’s existing Nutrition & Health (N&H) business
with opportunity for growth synergies.
By integrating
FMC’s complementary Health & Nutrition business,
DuPont will strengthen its N&H capabilities
with broader offerings and an expanded footprint.
DuPont’s N&H business is a leader
in the food ingredients industry,
using renewably sourced raw materials
to create a wide range of ingredients
that food manufacturers use to provide
safer, healthier, more affordable and nutritious
food and beverages for consumers.
This transaction strengthens DuPont’s access
to key ingredients for its systems
and food texturants portfolio,
enables the business to expand
into the fast-growing pharma excipients space,
and provides access to new
and complementary routes to market.
As a result, DuPont N&H will be in a stronger position
to drive growth, invest in R&D, and provide
more products and solutions to customers worldwide.
The transaction with FMC is expected to close
in the fourth quarter of 2017, subject to
the closing of the DuPont and Dow merger,
in addition to other customary closing conditions,
including regulatory approvals.
Evercore and Goldman, Sachs & Co.
are serving as DuPont’s financial advisors
for the transaction,
with Skadden, Arps, Slate, Meagher & Flom LLP
acting as its legal advisor.
Contacts Dupont
Investors
Greg Friedman
greg.friedman@dupont.com
+1 302-774-4994
Media
Dan Turner
daniel.a.turner@dupont.com
+1 302-996-8372
SOURCE
FMC Media contact:
Dwayne Roark,
+1.215.299.6820,
dwayne.roark@fmc.com;
FMC Investor contact:
Michael Wherley,
+1.215.299.6543,
michael.wherley@fmc.com
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