10 January 2011 18:48 [Source: ICIS news]
Correction: In the ICIS story headlined “DuPont expects to see synergies benefits in 2013 on Danisco purchase” dated 10 January 2011, please read in the seventh paragraph … (18:22 hours GMT) … instead of … (17:22 hours GMT) …. A corrected story follows.
HOUSTON (ICIS)--DuPont will take an earnings hit this year as a result of its $6.3bn (€4.9bn) acquisition of Danish food ingredients and enzymes firm Danisco, but expects to see $130m in cost-savings synergies by 2013, company executives said on Monday.
DuPont expected the acquisition to cut its 2011 earnings by 30-45 cents/share to a range of $3.30-3.60/share.
DuPont executive vice president and chief financial officer Nicholas Fanandakis said during a webcast that the company would strive to minimise the earnings impact.
DuPont hoped to achieve a pre-tax benefit $130m in cost-savings synergies by 2013 as a result of the acquisition, Fanandakis said.
Danisco said DuPont would offer Danish kroner (DKr) 665 ($113/share) for each share of Danisco in cash, equivalent to a total transaction value of DKr36.1bn.
The offer represented a 25% premium to Danisco’s closing share price on 7 January, a 33% premium to last month’s average share price. The offer represented a multiple of 12.8x earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the past 12 months.
DuPont shares on the New York Stock Exchange fell $1.16 to $48.60/share as of 13:22 hours New York time (18:22 hours GMT), while Danisco shares in Copenhagen rose DKr127 to DKr657/share.
($1 = €0.78, $1 = DKr5.75)
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