FMC Corp. announced this week that it has successfully completed the closing of its two pending transactions with DuPont. The companies signed a definitive agreement on March 31, 2017, and have now satisfied all necessary conditions and approvals.
As part of the deal, DuPont acquired FMC Health & Nutrition and received $1.2 billion in cash, while FMC acquired DuPont's global chewing pest insecticide portfolio, its global cereal broadleaf herbicides and a substantial portion of DuPont's global crop protection research and development (R&D) capabilities. FMC expects the acquired assets to generate approximately $1.5 billion in revenue and $475 million of earnings before interest, tax, depreciation and amortization in 2017.
DuPont had to divest the assets to comply with the European Commission's ruling related to its merger with The Dow Chemical Co., which was completed on Aug. 31, 2017, to form DowDuPont.
FMC Agricultural Solutions is now the fifth-largest crop protection chemical company in the world by revenue, with estimated annual revenue of approximately $3.8 billion.
A first look at the combined company and the integration of this acquisition will be provided next week as part of its third quarter 2017 earnings conference call.