 A farmer checks DuPont's drought-tolerant 'Pioneer' corn seeds, in preparation for planting, near Hays, Kansas, in this file photo. Dupont will buy Danisco for $6.3 billion. Bloomberg photo |
Danish specialty food ingredients company Danisco said on Monday it would be acquired by U.S. chemicals giant Dupont in a deal worth $6.3 billion (4.9 billion euros), pending approval by regulators.
The purchase will involve $5.8 billion paid in cash and assumption of $500 million of Danisco's net debt, the Wilmington, Delaware-based DuPont said late Sunday.
"Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth," Agence France-Presse quoted DuPont CEO Ellen Kullman as saying.
"Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont nutrition and health and applied biosciences," DuPont said in a statement.
“Du Pont will offer 665 Danish kroner per share, which is a premium of 25 percent compared to the closing price on Friday,” said Jyske Bank analysts in a research report on Monday. “Danisco’s board has decided to support the proposal. Du Pont and Danisco has cooperated throughout a number of years, and Danisco’s activities should be included in Du Pont’s ‘Nutrition & Health’ and ‘Applied Bio Sciences’ divisions.”
The transaction is expected to close early in the second quarter of this year, pending the green light from Danish regulators.
Kullman said that Danisco had two global businesses that strongly complemented DuPont's current biotechnology capabilities, a research and development pipeline and specialty food ingredients, a combination that offers "attractive long-term financial returns."
"This also would create new opportunities across other parts of the DuPont portfolio, including traditional materials science offerings," she added.
Danisco produces specialty food ingredients, including enablers, cultures and sweeteners, that generate about 65 percent of its total sales. Genencor, its enzymes division, represents 35 percent of total sales.
Danisco, which has 7,000 employees and operates in 23 countries, has a turnover of $2.37 billion.
The purchase will involve $5.8 billion paid in cash and assumption of $500 million of Danisco's net debt, the Wilmington, Delaware-based DuPont said late Sunday.
"Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth," Agence France-Presse quoted DuPont CEO Ellen Kullman as saying.
"Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont nutrition and health and applied biosciences," DuPont said in a statement.
“Du Pont will offer 665 Danish kroner per share, which is a premium of 25 percent compared to the closing price on Friday,” said Jyske Bank analysts in a research report on Monday. “Danisco’s board has decided to support the proposal. Du Pont and Danisco has cooperated throughout a number of years, and Danisco’s activities should be included in Du Pont’s ‘Nutrition & Health’ and ‘Applied Bio Sciences’ divisions.”
The transaction is expected to close early in the second quarter of this year, pending the green light from Danish regulators.
Kullman said that Danisco had two global businesses that strongly complemented DuPont's current biotechnology capabilities, a research and development pipeline and specialty food ingredients, a combination that offers "attractive long-term financial returns."
"This also would create new opportunities across other parts of the DuPont portfolio, including traditional materials science offerings," she added.
Danisco produces specialty food ingredients, including enablers, cultures and sweeteners, that generate about 65 percent of its total sales. Genencor, its enzymes division, represents 35 percent of total sales.
Danisco, which has 7,000 employees and operates in 23 countries, has a turnover of $2.37 billion.
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