By Jamie Martin
FMC Corporation has announced a definitive agreement with Tessenderlo Group that will bring a strategic investment of approximately $400 million into the agricultural sciences company.
The investment will give Tessenderlo Group a minority ownership stake of about 20% in FMC once the transaction is completed. The shares will be purchased at a price of $13.30 per share.
According to both companies, the agreement aligns with their long-term goals. Tessenderlo views FMC as a strong agricultural business with significant growth opportunities driven by its portfolio of innovative crop protection technologies and future product pipelines.
FMC's Board of Directors approved the agreement after evaluating strategic alternatives over the past several months. The company intends to use the investment to reduce debt and strengthen its overall financial position.
"Our investment in FMC perfectly aligns with Tessenderlo Group's strategy to expand our agro platform through strategic cornerstone investments whereby we take a minority position in high-quality companies. FMC offers an attractive opportunity to invest in a business with meaningful long-term potential driven by a new generation of proprietary molecules that are renewing its portfolio and strengthening its competitive position," said Luc Tack, chief executive officer, Tessenderlo Group.
The investment is one of several major steps FMC has taken recently to improve flexibility and unlock capital.
"This agreement follows a comprehensive and deliberate process, and our Board is confident that entering into this agreement is the best path forward for our company and its shareholders," said Pierre Brondeau, chairman, chief executive officer and president.
These initiatives include obtaining covenant relief through amendments to its revolving credit facility, securing $1.2 billion from a bond offering, agreeing to sell its India commercial operations for $252 million, signing a supply and license agreement with Corteva that includes a $200 million prepayment, and completing a framework agreement for a $114 million property sale and leaseback transaction.
Company leaders believe these actions will help FMC focus on strategic priorities while maintaining support for customers and agricultural markets around the world.
FMC also plans to continue advancing its research and development pipeline and speed up the introduction of new innovations. Company executives said improved liquidity and lower debt levels will create a stronger foundation for future growth.
Photo Credit: pexels-karolina-grabowska
Categories: National