FMC Corp. 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 Sept. 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.
FMC president, chief executive officer and chairman Pierre Brondeau said the transaction will broaden FMC's Agricultural Solutions portfolio and significantly strengthen its market access.
"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," he said. "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."
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, FMC Agricultural Solutions is expected to represent approximately three-quarters of the company's total revenue, up from less than 40% as recently as 2009.