FMC plans to separate agricultural, mineral entities

March 14, 2014  - By

FMClogoFMC Corporation plans to separate into two independent companies. The new FMC would include its agricultural solutions and health and nutrition segments, while its second company would be FMC Minerals.

FMC plans to complete the separation in early 2015, both listed on the New York Stock Exchange.

“The creation of two independent companies will deliver meaningful benefits to each of the businesses, the communities in which we operate and all of our stakeholders,” said Pierre Brondeau, FMC’s president, CEO and chairman. “Our customers will continue to have collaborative relationships with financially strong organizations that are focused on meeting their needs, and our employees will have new career opportunities.”

The new FMC will be a technology-based and customer-driven company with deep application expertise and solutions for innovative crop-protection products.

Combined revenue and earnings for the agricultural solutions and health and nutrition segments are expected to be approximately $3.35 billion, up 16 percent over 2013, and $815 million, up 15 percent over 2013, respectively, according to the company.

FMC Minerals includes the alkali chemicals and lithium businesses, which produces materials like natural soda ash.

Based on the midpoint of the company’s February 2014 outlook, revenue and earnings for the FMC Minerals segment are expected to be approximately $1.0 billion, up seven percent over 2013, and $153 million, up 19 percent over 2013, respectively.

Bank of America Merrill Lynch and Goldman Sachs are acting as financial advisors to FMC Corporation on the proposed transaction and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to the company.

AT Staff

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