FMC and DuPont have inked a deal that will see FMC pick up the portion of DuPont’s crop protection business the EU says must be divested for the DuPont-Dow merger to go ahead.
In exchange DuPont will acquire FMC Health and Nutrition along with $1.2 billion (all figures U.S. funds) in cash.
FMC will acquire DuPont’s global chewing pest insecticide portfolio, its global cereal broadleaf herbicides, and a substantial portion of DuPont’s global crop protection R&D capabilities.
In 2017, FMC expects this acquired business will generate approximately $1.5 billion in revenue.
After closing of the acquisition, FMC Agricultural Solutions will become the fifth largest crop protection chemical company in the world by revenue, with estimated annual revenue of approximately $3.8 billion.
“This is a significant step forward for FMC, and for our Agricultural Solutions business in particular,” said Pierre Brondeau, FMC president, CEO and chairman. “The combination of market-leading products from DuPont’s crop protection portfolio and its world-class R&D capabilities will transform our Agricultural Solutions business into a tier-one ag technology company.”
The acquired portion of DuPont’s crop protection business includes an industry-leading selective insecticide portfolio consisting of Rynaxypyr, Cyazypyr and Indoxacarb. The first two products have full patent protection over their respective active ingredients, and FMC expects them to generate over $1 billion in 2017 revenue. It also includes DuPont’s global cereal broadleaf herbicides, consisting of nine active ingredients and multiple formulated products.