Diversified chemical company FMC Corp. said today that it will acquire Danish firm Cheminova for $1.8 billion using cash and debt and expand its agricultural business.
"This transaction will broaden our Agricultural Solutions portfolio and significantly strengthen our market access in key agricultural end markets," said Pierre Brondeau, who serves as president, CEO, and chairman of FMC.
Founded in California, but now based in Philadelphia, FMC is a publicly traded company with $3.9 billion in sales in 2013. More recently, it reported $109 million in net income for the quarter ending June 30, 2014.
The Cheminova deal will broaden FMC’s geographical reach and agricultural product lines. "Cheminova's direct market access in Europe, combined with its strong position in Latin America, will help bring greater balance to our business," Brondeau said. "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."
Those offerings include a variety of product lines and technologies in insecticides, herbicides, fungicides, and micronutrients. "Cheminova has a portfolio of more than 60 active ingredients, over 2,300 registrations and a pipeline of active ingredients currently under development," Brondeau said. "…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."
The deal is expected to close next year.