DuPont made another move to strengthen its biotech industries by announcing it would purchase Danisco of Denmark for $5.8 billion in cash.
Danisco has been a partner with DuPont for several years. DuPont praised Danisco’s abilities to deal with the challenges of global food production and reduced fossil fuel consumption. “Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth,” said DuPont Chair and CEO Ellen Kullman. “Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont Nutrition & Health and Applied BioSciences.”
Danisco mainly deals with specialty food ingredients. The company describes itself as making ingredients are used globally in a wide range of industries from bakery, dairy and beverages to animal feed, laundry detergents and bioethanol offering functional, economic and environmental benefits. 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.DuPont says the deal is expected to be financed with about $3 billion in existing cash and the remainder in debt. It says stock projections for this year put DuPont at $3.30 to $3.60 per share. It expects stock value to go down $.30 to $.45 per share when the deal is finalized by the end of the year.