FMC Corp acquires Denmark-based Cheminova for $1.8 bn

FMC Corporation has signed a definitive agreement to acquire Danish crop protection company Cheminova A/S, a wholly-owned subsidiary of Auriga Industries. The transaction is expected to close in early 2015 and will be accretive to adjusted earnings in the first full year following the acquisition.
 
Pierre Brondeau, President, CEO and Chairman, FMC Corporation, said, “We are very excited about the opportunity to combine Cheminova with our own Agricultural Solutions business. 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 FMC to bring in greater balance to its business. Brondeau added, “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.”
 
Danish firm brings complementary technologies in insecticides and herbicides, significantly enhancing FMC's fungicide portfolio and adding a growing micronutrient business. Brondeau said, "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.”
 
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."
 
Cheminova has a wholly owned subsidiary in India, Cheminova India, and has three facilities at Panoli (Gujarat) to manufacture technicals, intermediates and formulations.