DuPont to acquire Danisco for $6.3 billion

[News_Editor]

DuPont to acquire Danisco for $6.3 billion

2011-01-10 16:12:20 GMT+7 (ICT)

WILMINGTON, DELAWARE (BNO NEWS) -- DuPont on Sunday night announced that it has entered into a definitive agreement for the acquisition of Danisco for $5.8 billion in cash and assumption of $500 million of Danisco net debt.

The acquisition is expected to be financed with about $3 billion in existing cash and the remainder in debt, and the transaction is expected to close early in the second quarter and be cash and earnings accretive in 2012, the first full year of the combined entity.

Upon closing, Danisco, a global enzyme and specialty food ingredients company that employs 7,000 people in 23 countries, is expected to help DuPont establish itself as a clear leader in industrial biotechnology with science-intensive innovations that address global challenges in food production and reduced fossil fuel consumption.

"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."

"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," Kullman said.

DuPont has set its 2011 earnings per share outlook at a range of $3.30 to $3.60 per share. The anticipated impact of this transaction would reduce that outlook by $.30 to $.45 per share on a reported basis.

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