FMC Corporation signs definitive agreement to sell Global Specialty Solutions business to Envu
FMC has agreed to sell its Global Specialty Solutions (GSS) business to Envu for $350 million, subject to closing adjustments. The transaction is expected to be completed by the end of 2024, pending regulatory approval. FMC intends to use the proceeds for debt reduction. This divestment allows FMC to focus on its core crop protection market. Envu, backed by private equity firm Cinven, sees the acquisition as a strategic fit to boost innovation and growth in the environmental science sector.
- FMC will receive $350 million from the sale, aiding debt reduction.
- The divesture allows FMC to concentrate on the core crop protection market.
- Envu sees strategic synergies and innovation potential in the acquisition.
- FMC is divesting from a profitable business with a strong growth history.
The sale of FMC Corporation's Global Specialty Solutions (GSS) business to Envu for
For Envu, acquiring GSS supports its growth strategy in the environmental science sector. The synergies and expanded product offerings could enhance Envu’s market position and operational efficiencies. Investors should monitor the regulatory approval process and any potential integration challenges but, overall, this acquisition appears strategically sound for both parties involved.
This transaction highlights FMC’s strategic shift away from non-core markets like turf and pest control to concentrate on its primary agricultural business. The divestiture could streamline FMC’s operations and improve profitability by concentrating on higher-margin segments. Investors should note that FMC's focus on crop protection aligns with global trends towards sustainable agriculture and food security.
Envu, backed by Cinven, stands to benefit from the acquisition through potential market expansion and enhanced product innovation capabilities. It's worth considering the broader market implications, as the environmental science sector is experiencing increased demand for solutions that enhance environmental health. This acquisition may position Envu as a more formidable player in this growing market.
The completion of this transaction hinges on regulatory approvals and customary closing conditions, consistent with mergers and acquisitions of this scale. Given Envu’s recent history of carveout transactions and focus on environmental science, they are likely well-equipped to navigate any legal or regulatory hurdles. From a legal standpoint, the involvement of established legal advisers like McCarter & English for FMC and Baker McKenzie for Envu indicates thorough due diligence has been conducted.
Investors should keep an eye on any potential regulatory challenges, although none are anticipated given the complementary nature of both businesses and their market positions. Successful closing of the deal by year-end 2024 could provide a timely uplift to both companies' strategic goals.
FMC Corporation (NYSE:FMC), a leading global agricultural sciences company, today announced it has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC, known as Envu, an environmental science company providing innovations that protect and enhance the health of environments around the world. Envu will purchase the GSS business for a purchase price of
In November 2023, FMC announced plans to explore strategic options for GSS, which includes a line of products that serve a diverse mix of non-crop markets such as golf courses, professional sports stadiums and pest control. As FMC concentrates on innovating products and services for the global crop protection market, GSS no longer has a clear, strategic role in the company's mid- or longer-term goals.
"Global Specialty Solutions is a profitable business with a strong history of growth. We believe this agreement with Envu will provide the attention and resources it needs to continue thriving," said Pierre Brondeau, FMC Chairman and CEO. "With this divestment, FMC can focus solely on its core business."
Envu, which was acquired by international private equity firm Cinven in 2022, is solely dedicated to the environmental science sector and sees GSS as an opportunity to support its growth strategy while continuing to deliver powerful innovations for customers in professional pest management, turf & ornamentals and more.
"As a focused company that is dedicated to delivering forward-thinking solutions for our customers, we are excited by the prospect of joining forces with the GSS business," said Gilles Galliou, Envu CEO. "We see significant synergies and potential for accelerated innovation from the combination. In addition, as the successful outcome of a carveout transaction ourselves, we believe we are the ideal partner to help GSS through this transition and maximize our collective potential."
Marco Strizzi, Senior Principal at Cinven, added: "We are delighted to bring together two highly respected, complementary businesses with a shared focus on delivering seamless customer service and product innovation in the attractive environmental science market. We see FMC GSS as a compelling addition to Envu strategically and financially and look forward to continuing to support the combined business' strong growth trajectory."
The transaction is expected to close by year-end 2024, subject to regulatory approval and other customary closing conditions. FMC intends to allocate all proceeds from the sale to debt reduction.
BofA Securities acted as financial adviser and McCarter & English was legal adviser to FMC, while Barclays acted as financial adviser and Baker McKenzie was legal adviser to Envu for the transaction. Further terms and conditions of the agreement were not disclosed.
About FMC
FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber and fuel for an expanding world population while adapting to a changing environment. FMC's innovative crop protection solutions – including biologicals, crop nutrition, digital and precision agriculture – enable growers, crop advisers and turf and pest management professionals to address their toughest challenges economically while protecting the environment. With approximately 6,200 employees at more than 100 sites worldwide, FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are consistently better for the planet. Visit fmc.com to learn more and follow us on LinkedIn®.
About Envu
Envu was founded in 2022, a company built on years of environmental science experience, for the sole purpose of advancing healthy environments for everyone, everywhere. Envu offers dedicated services in: Professional Pest Management, Forestry, Ornamentals, Golf, Industrial Vegetation Management, Lawn & Landscape, Mosquito Management, and Range & Pasture. Envu collaborates with customers to design innovative solutions that meet their requirements today and well into the future. The Envu portfolio consists of over 180 trusted and well-known brands. The company employs 900 people, operates in 100 countries, and has four global innovation hubs. For additional information, visit www.envu.com.
About Cinven
Cinven is a leading international private equity firm focused on building world-class global and European companies. Its funds invest in six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has offices in
Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society.
Cinven Capital Management (V) General Partner Limited, Cinven Capital Management (VI) General Partner Limited, Cinven Capital Management (VII) General Partner Limited and Cinven Capital Management (SFF) General Partner Limited are each authorised and regulated by the Guernsey Financial Services Commission, and Cinven Limited is authorised and regulated by the Financial Conduct Authority.
In this press release 'Cinven' means, depending on the context, any of or collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing.
For additional information on Cinven please visit www.cinven.com and www.linkedin.com/company/cinven/.
Statement under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: FMC and its representatives may from time to time make written or oral statements that are "forward-looking" and provide other than historical information, including statements contained in this press release, in FMC's other filings with the SEC, and in presentations, reports or letters to FMC stockholders.
In some cases, FMC has identified these forward-looking statements by such words or phrases as "outlook", "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words or phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for the company based on currently available information. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These statements are qualified by reference to the risk factors included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"), the section captioned "Forward-Looking Information" in Part II of the 2023 Form 10-K and to similar risk factors and cautionary statements in all other reports and forms filed with the Securities and Exchange Commission ("SEC"). We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are qualified in their entirety by the above cautionary statement.
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