10 January 2011 05:25 [Source: ICIS news]
SINGAPORE (ICIS)--US chemical major DuPont has entered into an agreement to acquire Danish food ingredients and enzymes firm Danisco for $6.3bn (€4.91bn), the company said in a statement late on Sunday.
The purchase will involve $5.8bn paid in cash and assumption of $500m of Danisco's net debt, the statement said.
The acquisition was expected to be financed with about $3bn in existing cash and the remainder in debt, it said.
“The transaction is expected to close early in the second quarter and be cash and earnings accretive in 2012, the first full year of the combined entity,” the statement added.
However, the acquisition was expected to reduce Dupont's earnings in 2011 of $3.30 to $3.60 per share by a range of 30 cents to 45 cents per share on a reported basis, the company noted.
“This transaction is a perfect strategic fit with our growth opportunities and will help us solve global challenges presented by dramatic population growth in the decades to come, specifically related to food and energy,” said DuPont chairwoman and CEO Ellen Kullman.
"Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont nutrition and health and applied biosciences," DuPont said in the statement.
Danisco and DuPont are already joint venture partners in the development of cellulosic ethanol technology, according to the company statement.
Danisco produces specialty food ingredients, including enablers, cultures and sweeteners that generate about 65% of total sales. The firm’s enzymes division represent 35% of total sales, according to the statement.
Danisco has nearly 7,000 employees globally with operations in 23 countries.
($1 = €0.78)
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