FMC Corp., a global agricultural sciences company, announced it has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, known as Envu.
Logos: Envu and FMC
Envu will purchase the GSS business for $350 million, subject to a closing working capital adjustment.
In November 2023, FMC announced plans to explore strategic options for GSS, which includes a line of products that serve a diverse mix of non-crop markets such as golf courses, professional sports stadiums and pest control. As FMC concentrates on innovating products and services for the global crop protection market, GSS no longer has a clear, strategic role in the company’s mid- or longer-term goals.
“Global Specialty Solutions is a profitable business with a strong history of growth. We believe this agreement with Envu will provide the attention and resources it needs to continue thriving,” said Pierre Brondeau, FMC Chairman and CEO. “With this divestment, FMC can focus solely on its core business.”
According to Envu, which was acquired by international private equity firm Cinven in 2022, the company is solely dedicated to the environmental science sector and sees GSS as an opportunity to support its growth strategy while continuing to deliver powerful innovations for customers in professional pest management, turf and ornamentals and more.
“As a focused company that is dedicated to delivering forward-thinking solutions for our customers, we are excited by the prospect of joining forces with the GSS business,” said Gilles Galliou, CEO of Envu. “We see significant synergies and potential for accelerated innovation from the combination. In addition, as the successful outcome of a carveout transaction ourselves, we believe we are the ideal partner to help GSS through this transition and maximize our collective potential.”
The transaction is expected to close by year-end 2024, subject to regulatory approval and other customary closing conditions. FMC intends to allocate all proceeds from the sale to debt reduction.
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