Published: Mon, April 03, 2017
Economy | By Melissa Porter

DuPont to Get $1.6B in Asset Swap Deal With FMC

DuPont to Get $1.6B in Asset Swap Deal With FMC

DuPont also gets $1.6 billion, mostly in cash.

The purchase also gives FMC DuPont's DE crop protection research headquarters, 14 regional development labs and related regulatory capabilities.

Lithium, FMC's remaining non-agriculture business, will be operated as a separate entity with an eye toward spinning it off as a publicly traded company, Brondeau said.

DuPont CEO Ed Breen said the deal will benefit the three spin off companies that will be created after within two years of completing the Dow merger.

"The crop protection industry is undergoing significant change, as evidenced by the consolidation now underway". More importantly, FMC acquired significant R&D capabilities and a discovery pipeline of 15 active ingredients; we estimate peak sales $3bn. Two of the businesses - agriculture and specialty products - will be based in Wilmington.

DuPont is selling herbicide and insecticide properties to FMC along with some related research-and-development programs.

The companies now expect the deal, which has been delayed by intense regulatory scrutiny, to close in August 2017. FMC says the products complement its broad spectrum insecticide and pre- and post-emergent herbicide portfolios.

The Symetis portfolio includes the ACURATE TA™ and ACURATE neo/TF valve* systems for use in the treatment of high-risk patients suffering from severe and symptomatic aortic valve stenosis, which are sold in Europe and in other geographies outside of the United States. With this acquisition, FMC's crop protection revenue will be nearly equally spread across all four major regions - North America, Latin America, Europe and Asia, according to the media statement. And FMC will acquire a global manufacturing network to support the product, including four ingredient manufacturing facilities, and 10 regional formulation plants.

The deal included DuPont's crop protection R&D lab in DE and the 15 synthetic proprietary chemicals that Dupont is now working on there. The organization includes a pipeline of 15 synthetic active ingredients now in development covering insecticides, herbicides and fungicides, and an extensive library of 1.8 million synthetic compounds.

Under the agreement, DuPont will sell a portion of its crop protection business, including a portion of the Stine-Haskell Research Center. It is a very complementary fit with DuPont's current portfolio. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Dow's or DuPont's consolidated financial condition, results of operations, credit rating or liquidity.

Dow Chemical Co. and DuPont Co. again pushed back the time frame to finish their merger, but they said the deal is still on track as DuPont moved forward with plans for divesting assets to satisfy European regulators. Closing is expected to occur in the fourth quarter of 2017.

Investors bid up shares in companies with better-than-expected earnings Friday.

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