DuPont to acquire Danisco

Science-based products and services company DuPont has entered into a definitive agreement for the acquisition of Danisco, a global enzyme and speciality food ingredients company.

The transaction would see DuPont acquire Danisco for $5.8 billion (€4.4 billion) cash. It will also take on Danisco’s net debt of $500 million.

Speaking about the deal DuPont’s chair and CEO Ellen Kullman says: ‘Danisco has attractive, market-driven science businesses that offer clean synergies with DuPont Nutrition & Health and Applied Sciences.

It is expected for the transaction to be financed with around $3 billion existing cash, while the rest will be in debt. The deal is slated to close by Q2 2011.

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 $0.30 to $0.45 per share on a reported basis.

‘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,’ adds Kullman.