My watch list
my.chemeurope.com  
Login  

FMC Corporation Announces Agreement to Acquire Cheminova for $1.8 Billion

09-Sep-2014

FMC Corporation announced that it has signed a definitive agreement to acquire Cheminova A/S, a wholly owned subsidiary of Auriga Industries A/S. Cheminova is a multinational crop protection company based in Denmark. FMC will fund the all-cash acquisition through a mixture of debt and existing cash reserves. The transaction is expected to close in early 2015 and will be accretive to adjusted earnings in the first full year following the acquisition.

"We are very excited about the opportunity to combine Cheminova with our own Agricultural Solutions business," said Pierre Brondeau, FMC Corporation president, CEO and chairman. "Cheminova is a company that we have long considered to be an attractive potential partner. It follows a similar strategic approach to FMC in applying technology to deliver solutions to its customers, and has a highly complementary product portfolio and geographic footprint. This transaction will broaden our Agricultural Solutions portfolio and significantly strengthen our market access in key agricultural end markets.

"Cheminova's direct market access in Europe, combined with its strong position in Latin America, will help bring greater balance to our business. Its technology will allow us to expand our position in existing crop segments and provide accelerated access to additional crops, such as cereals. It will also strengthen our offerings to existing customers, especially in sugarcane, soybeans and cotton."

Brondeau added that Cheminova brings complementary technologies in insecticides and herbicides, significantly enhances FMC's fungicide portfolio and adds a growing micronutrient business. "Cheminova has a portfolio of more than 60 active ingredients, over 2,300 registrations and a pipeline of active ingredients currently under development. It is the addition of this broad suite of technology that is particularly exciting to us, and we firmly expect to increase our pace of new product launches in the coming seasons as a direct result of adding Cheminova's capabilities to ours," said Brondeau.

FMC will modify its previously announced separation plans by pursuing a sale of Alkali Chemicals. Commenting on this decision, Brondeau said, "FMC is committed to its strong balance sheet and a sale of Alkali Chemicals will allow us to de-lever to a point that is appropriate for our business profile. Alkali Chemicals is a well-run, highly profitable and cash generative business, and we are confident it will attract many interested buyers. We expect to complete this sale by mid-2015."

FMC Lithium will be retained as a separate operating segment.   

Facts, background information, dossiers
More about FMC
  • News

    FMC Corporation Announces Separation into Two Independent Public Companies

    FMC Corporation announced plans to separate into two independent public companies, "New FMC," which will be comprised of FMC's Agricultural Solutions and Health and Nutrition segments and "FMC Minerals," which will be comprised of FMC's current Minerals segment.  The company expects the sep ... more

    FMC Corporation Signs Definitive Agreement to Sell Peroxygens Business to One Equity Partners

    FMC Corporation has signed a definitive agreement to sell its Peroxygens business to affiliates of One Equity Partners, the private investment arm of J.P. Morgan Chase & Co.  The transaction, valued at approximately $200 million, is expected to close in the first quarter of 2014, subject to ... more

    FMC Increases Soda Ash Prices

    FMC Wyoming Corporation announced that effective August 1, 2012, or as contract terms permit, it will increase off-list soda ash prices by $10.00/short ton for all grades of soda ash. The increase applies to both bulk and packaged products. This increase is necessary to recover cost increas ... more

  • Companies

    FMC Foret, S.A.

    FMC Corporation is one of the world’s foremost, diversified chemical companies with leading positions in agricultural, industrial and consumer markets. From our inception in 1883, FMC has been providing solutions to the world’s best companies and their customers. Today, we use an array of a ... more

More about Cheminova
Your browser is not current. Microsoft Internet Explorer 6.0 does not support some functions on Chemie.DE