PHILADELPHIA — FMC Corporation announced that it has completed the closing of its acquisition of Cheminova A/S, a multinational crop protection company based in Denmark and a wholly-owned subsidiary of Auriga Industries A/S. The companies announced the signing of a definitive acquisition agreement on September 8, 2014, and have now satisfied all necessary conditions and regulatory approvals.
FMC completed the acquisition of Cheminova for an aggregate purchase price of approximately $1.8 billion, including assumption of debt. FMC expects the transaction to be accretive to adjusted earnings in the first full year following the acquisition.
"The acquisition of Cheminova is fully aligned with our corporate strategy to focus FMC's portfolio on agriculture, health and nutrition end markets," said Pierre Brondeau, FMC president, CEO and chairman. "Cheminova has a highly complementary product portfolio and geographic footprint and follows a similar strategic approach to FMC in applying technology to deliver solutions to its customers. This transaction will broaden our Agricultural Solutions portfolio and significantly strengthen our market access."
Brondeau continued, "Cheminova gives us direct market access to key countries in Europe and enhances our customer reach in India, Australia and throughout Latin America, bringing greater balance to our agricultural business. Its technology will enable us to expand FMC's position in existing crops; accelerate access to additional crops, such as cereals; and strengthen our offerings to customers, especially in sugarcane, soybeans and cotton. We expect to further enhance our innovation pipeline and generate significant new revenue opportunities for the combined business."
FMC has been realigning its business portfolio in recent years to expand its position in the crop protection market. With the acquisition of Cheminova, and the divestiture of the Alkali Chemicals business completed on April 1, 2015, FMC Agricultural Solutions is expected to represent approximately three quarters of the company's total revenue, up from less than 40 percent as recently as 2009.
The company will provide integration updates during quarterly earnings calls and at its upcoming Investor Conference on May 11, 2015.