Global chemicals major DuPont will acquire Denmark’s enzyme and specialty food ingredients maker Danisco for $ 5.8 billion.
Both companies have presence in India.
As part of the deal, DuPont would shell out cash worth USD 5.8 billion apart from assuming Danisco’s debt to the tune of $ 500 million.
“This transaction would establish DuPont as a clear leader in industrial biotechnology with science-intensive innovations that address global challenges in food production and reduced fossil fuel consumption,” DuPont said in a statement.
The deal, is expected to close in 2011 second quarter.
DuPont would fund the transaction with $ 3 billion in existing cash and remaining amount through debt.
DuPont and Danisco are already joint venture partners in the development of cellulosic ethanol technology.
“Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont Nutrition & Health and Applied BioSciences,” DuPont Chair and CEO Ellen Kullman said.
The acquisition would create new opportunities across various parts of DuPont portfolio, including traditional materials science offerings, he added.
Danisco’s specialty food ingredients - that includes enablers, cultures and sweeteners - generates about 65 per cent of the company’s total sales. The firm has nearly 7,000 employees spread across 23 countries.