Dupont to Acquire Danisco

DuPont has made an agreement which will see the science giant acquire food ingredients and Industrial Biotechnology specialists Danisco for a total of $6.3 billion.

DuPont Chair and CEO, Ellen Kullman:

“Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth,” said. “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 speciality 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. 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.”  

The deal will see DuPont pay $5.8 billion for the company and take responsibility for $500 million in debts. Dupont will pay for the deal with $3 billion in cash and $3.3 billion in debt. The acquisition is expected to be complete in 2012.

The two companies already work closely together in the cellulosic bioethanol arena, beginning construction of a pilot scale bio-refinery in Tennessee as a joint venture back in 2008. The acquisition will make DuPont a world leader in Industrial Biotechnology with Danisco’s enzymes division Genencor on board.