Cheminova 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.
"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," Brondeau said. "This transaction will broaden our Agricultural Solutions portfolio and significantly strengthen our market access."
According to Brondeau, Cheminova gives FMC direct market access to key countries in Europe and enhances customer reach in India, Australia and throughout Latin America, bringing greater balance to the agricultural business.
Cheminova's technology, he said, will enable FMC to expand position in existing crops; accelerate access to additional crops, such as cereals; and strengthen offerings to customers, especially in sugarcane, soybeans and cotton.
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"We expect to further enhance our innovation pipeline and generate significant new revenue opportunities for the combined business," he said.
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% as recently as 2009.