Philadelphia, Pennsylvania, USA
September 8, 2014
- Denmark-headquartered multinational crop protection company
- Broadens market access in key geographic regions
- Expands position in existing crop segments and accelerates access to additional crops
- Provides new technology applications, including research and formulation expertise
- Enhances portfolio with complementary products and technologies
- Accretive to adjusted earnings in the first full year
- Modifies previously announced separation process with plan to divest Alkali Chemicals; proceeds used to reduce acquisition-related debt
FMC Corporation (NYSE: FMC) today 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.
The acquisition is expected to close in early 2015 and is subject to customary closing conditions and regulatory approvals. It will be financed with committed debt facilities. FMC anticipates achieving synergies through a combination of production and operating efficiency gains, as well as improved market access. FMC expects the transaction to be accretive to adjusted earnings in the first full year following completion of the acquisition.
Goldman Sachs acted as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal counsel to FMC in connection with the acquisition. Citigroup provided additional financial advice and committed debt facilities.
FMC Corporation is a diversified chemical company serving agricultural, industrial and consumer markets globally for more than a century with innovative solutions, applications and quality products. In 2013, FMC had annual sales of approximately $3.9 billion. The company employs approximately 5,600 people throughout the world, and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Minerals.
Cheminova A/S is a wholly owned operating company of Auriga Industries A/S, which is listed on the Copenhagen Stock Exchange. It develops, produces and markets crop protection products. All activities are carried out with due consideration for the environment and in compliance with ever higher sustainability standards. The products are sold in more than 100 countries, and 98% of sales are generated outside Denmark. In 2013, the group posted revenue of DKK 6.6 billion and has more than 2,200 employees in a global organization with subsidiaries in 24 countries.
FMC Corporation anuncia acordo para aquisição de Cheminova por US$ 1,8 bilhões
A FMC Corporation (NYSE:FMC - News) anunciou hoje os planos para se separar em duas empresas públicas independentes, "Nova FMC", que será composta pelos segmentos Agricultural Solutions e Health and Nutrition da FMC e a "FMC Minerals", que será composta pelo segmento atual de minerais da FMC. A empresa espera que a separação, que continua sujeita à aprovação do conselho final e outras condições habituais, tenha a forma de uma distribuição livre de impostos de ações aos acionistas existentes da FMC. A FMC Corporation espera concluir a separação no início de 2015 e cada empresa deverá ser listada na Bolsa de Valores de Nova York.
Pierre Brondeau, presidente, CEO e chairman da FMC Corporation, disse: "A FMC tem gerenciado proativamente seu portfólio durante os últimos quatro anos, como parte da Vision 2015, incluindo um realinhamento de nossos segmentos de relatórios no início do ano passado. Nossa decisão de nos dividirmos em duas empresas independentes é uma progressão natural de nossa estratégia. Acreditamos que a criação de duas empresas, cada uma com seu próprio patrimônio líquido de capital aberto, irá permitir a gestão de cada empresa na busca de sua própria estratégia. Isto dará a cada empresa um foco maior sobre os fatores de sucesso mais importantes para o seu negócio e permitir a adoção de uma estrutura de capital que seja adequada ao seu perfil de negócio.
A criação de duas empresas independentes trará benefícios significativos para cada um dos negócios, para as comunidades em que atuamos e a todos os nossos intervenientes. Nossos clientes continuarão tendo relações de colaboração com as organizações fortes financeiramente que estão focadas em atender às suas necessidades, e nossos funcionários terão novas oportunidades de carreira."
A Nova FMC será liderada por Pierre Brondeau, presidente, CEO e chairman e Paul Graves será o vice-presidente-executivo e CFO. Mark Douglas, presidente da Agricultural Solutions e Mike Smith, vice-presidente e diretor global de negócios da Health and Nutrition, continuarão em suas funções atuais.
A equipe de liderança da FMC Minerals será liderada por um novo CEO que será anunciado nos próximos meses. Andrew Sandifer, atual vice-presidente de Desenvolvimento Estratégico da FMC Corporation vai se unir à equipe de liderança executiva da FMC Minerals como CFO. Ed Flynn será o presidente de operações da FMC Minerals. Tom Schneberger e Eric Norris continuarão em suas funções de liderança executiva atuais em produtos químicos e lítio alcalinos, respectivamente.
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