PHILADELPHIA (AP) — FMC is buying a Danish insecticide company for $1.8 billion.
The diversified chemical company based in Philadelphia will fold Cheminova into its agricultural solutions business.
FMC Chairman and CEO Pierre Brondeau said Monday that the acquisition will allow it to better serve customers, particularly those using feedstock like in sugarcane, soybeans and cotton. Cheminova will also provide direct market access to Europe and has a strong position in Latin America, he said.
Cheminova A/S is a subsidiary of Auriga Industries A/S.
FMC is also said that it will try to sell its Alkali Chemicals division. It anticipates completing the sale by the middle of 2015.
FMC had announced in March that it planned to separate into two publicly traded companies.
FMC Corp. will fund the Cheminova transaction with debt and existing cash reserves.
The deal is targeted to close early next year. It's expected to add to FMC's adjusted earnings in the first year after the acquisition.