DuPont in $6.3bn swoop for Danisco
11 Jan 2011
Wilmington, Delaware ? DuPont is to acquire Danisco, a global enzyme and speciality food ingredients company, for $5.8 billion in cash and assumption of $500 million of Danisco net debt.
The deal would give DuPont a strong leadership in industrial biotechnology, particularly in areas related food production and reduced fossil fuel consumption: exploiting synergies with DuPont Nutrition & Health and Applied BioSciences.
DuPont chair and CEO Ellen Kullman said Danisco would help DuPont 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,” Kullman said.
“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,” she added.
Danisco’s portfolio includes speciality 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.
