DuPont to buy Danisco for $5.8 Billion
Wilmington, DE, United States (AHN) – DuPont has agreed to buy food ingredients maker Danisco for $5.8 billion, a takeover the American chemical manufacturer said would give it the edge in industrial biotechnology.
Delaware-based DuPont will buy all outstanding shares for 665 Danish kroner each and assume $500 million of Danisco’s debt. The offer is 25 percent higher than Danisco’s closing share price on Friday and nearly twice as much as the share price a year ago.
The acquisition sent Danisco shares jumping more than 25 percent in midday trading in Copenhagen. But DuPont dropped more than 5 percent along with other U.S. stocks amid concerns about the European debt crisis, which heightened on Monday in the wake of reports that Portugal was being pressured to receive a bailout.
The takeover between the two companies, who have been long-time partners particularly in ethanol technology, is expected to close in the second quarter. Danisco’s board of directors recommended the offer to shareholders on Monday.
DuPont, which invented Freon and developed Kevlar and nylon, said the acquisition will position it as the leader in biotech innovations that address global issues such as food production and fossil fuel consumption.
Danisco is the world’s largest manufacturer of food ingredients and industrial enzymes, which are used for agricultural and household products.
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