DuPont announced it will trade assets with FMC to win approval from the European Commission for its 130 billion USD merger with Dow.
Under the agreement, DuPont will sell a portion of its crop protection business, including a portion of the Stine-Haskell Research Center. In exchange, DuPont will acquire nearly all of Philadelphia-based FMC's Health & Nutrition business.
In addition, DuPont has pushed back the expected closure date of its merger with Dow. The deal is now expected to be completed between August 1 and September 1. Dow and DuPont had originally expected to finalize the merger in the first half of 2017.
The FMC deal, includes a cash portion of 1.2 billion USD and working capital of 425 million USD.
DuPont CEO Ed Breen said the deal will benefit the three spin off companies that will be created after within two years of completing the Dow merger. Two of the businesses - agriculture and specialty products - will be based in Wilmington. A third, material sciences company, will be headquartered in Dow's hometown of Midland, Michigan.
“Our intended independent Agriculture company will continue to benefit from the combined, complementary strengths of DuPont and Dow, which will include greatly expanded offerings and a robust pipeline across seed germplasm, biotech traits, and crop protection to provide greater choice and innovation to growers around the world," Breen said in a statement. " At the same time, we are significantly enhancing our Nutrition & Health capabilities, a key area of growth and opportunity for the intended independent Specialty Products company."
FMC will acquire DuPont's Cereal Broadleaf Herbicides and Chewing Instecidies portfolios - including Rynaxypyr, Cyazypr and Indoxacarb. It will also purchase DuPont's corp protection research and development pipeline with the exception of seed treatment, nematicides and late-stage research programs. The assets being divested generated about 1.4 billion USD in revenue last year, according to DuPont's regulatory filings.
DuPont, meanwhile, will acquire a Health & Nutrition business which generated more than 700 million USD in revenue last year. The unit's two key products are food ingredients and pharmaceutical excipients. DuPont said in a statement the acquisition will broaden its nutrition and health capabilities.
Evercore and Goldman Sachs & Co. served as DuPont's financial advisor on the deal, while Skadden Arps Slate Meagher & Flom acted as legal advisor.
By: Jeff Mordock (The News Journal).
Photo: Reuters.
Review: Emerging Market Formulations & Research Unit, Flagship Records.
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