FMC acquires DuPont’s Crop Protection business, sells Health and Nutrition business to DuPont
FMC Corp. has successfully completed the closing of its two pending transactions with DuPont.
The companies signed a definitive agreement on March 31, 2017, and have now satisfied all necessary conditions and approvals.
FMC has acquired the portion of DuPont's Crop Protection business it had to divest to comply with the European Commission ruling related to its merger with The Dow Chemical Company, which was completed on August 31, 2017, to form DowDuPont. Additionally, FMC has completed the sale of FMC Health and Nutrition to DuPont.
Divestiture of select DuPont Crop Protection assets
Under the terms of the agreement, FMC has acquired DuPont’s Cereal Broadleaf Herbicides and Chewing Insecticides portfolios – including Rynaxypyr, Cyazypyr and Indoxacarb. In addition, FMC acquired the DuPont Crop Protection research and development pipeline and organization, excluding seed treatment, nematicides, and late-stage R&D programs, which DuPont will continue to develop and bring to market, and excluding personnel needed to support marketed products and R&D programs that will remain with DuPont. The assets being divested generated revenues in 2016 of about $1.4 billion.
Acquisition of FMC Health & Nutrition business
As part of the transaction agreement, DuPont acquired 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.
The company will provide a first look at the combined company and the integration of this acquisition next week, as part of its third quarter 2017 earnings conference call on Tuesday, November 7, 2017, at 9 a.m. ET.