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DuPont Signs Agreement to Acquire Danisco

Published on 2011-01-12. Author : SpecialChem

DuPont recently announced it had entered into a definitive agreement for the acquisition of Danisco, a global enzyme and specialty food ingredients company, for $5.8 billion in cash and assumption of $500 million of Danisco net debt. Upon closing, this transaction would establish DuPont as a clear leader in industrial biotechnology with science-intensive innovations that address global challenges in food production and reduced fossil fuel consumption.

DuPont to Acquire Danisco

"Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth," said DuPont Chair and CEO Ellen Kullman. "Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont Nutrition & Health and Applied BioSciences."

"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. In addition, biotechnology and specialty food ingredients have the potential to change the landscape of industries, such as substituting renewable materials for fossil fuel processes and addressing food needs in developing economies, that will generate more sustainable solutions and create growth for the company," Ellen said.

The acquisition is expected to be financed with about $3 billion in existing cash and the remainder in debt. The transaction is expected to close early in the second quarter.

"Danisco has two well-positioned global businesses that strongly complement our current biotechnology capabilities, R&D 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," Ellen said.

About Danisco

Danisco is a leading technology-driven organization, with outstanding research and application development capabilities. The company has specialty food ingredients, including enablers, cultures and sweeteners, that generate about 65% of total sales; and Genencor, its enzymes division, represents 35% of total sales. Danisco and DuPont are already joint venture partners in the development of cellulosic ethanol technology. Danisco has nearly 7,000 employees globally with operations in 23 countries.

About DuPont

DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 90 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation. DuPont has more than 75 R&D facilities around the world, including centers in Paulinia, Brazil; Hyderabad, India; Shanghai, China; Utsunomiya, Japan; Kawasaki, Japan; Hsinchu, Taiwan; Wuppertal, Germany and Meyrin, Switzerland. The company's global R&D headquarters is located at the Experimental Station in Wilmington, Del. In 2009, DuPont invested $1.4 billion on global research and development, commercializing more than 1,400 new products - a 60 percent increase from the previous year. To date, DuPont has been awarded more than 35,000 U.S. patents - more than one every other day for the last 208 years.

Source: DuPont


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