FMC Corp To Sell Alkali Unit, Buy Pesticide Maker For $1.8 Billion

FMC Corp FMC signed a definitive agreement Monday to acquire Denmark-based pesticide maker Cheminova for $1.8 billion in cash and stock, and will also sell its alkali unit.

The Danish pesticide and herbicide company is the sole operating unit of Auriga Industries and operates in Europe and Latin America.

FMC also said it will sell its alkali chemicals unit, a part of its minerals segment, with a completed deal expected in mid-2015. The business is the world's largest producer of natural soda ash. An expected price for the unit wasn't disclosed.

Philadelphia-based FMC unveiled plans in March to split into two companies by spinning off to shareholders its agricultural and health and nutrition segments as a new company.

Sale of the alkali unit announced Monday will leave the minerals unit with its lithium business as its sole operation. Markets for the unit include energy storage, pharmaceuticals, polymers and industrial concerns.

FMC's Chief Executive Pierre Brondeau called the alkali unit a "well-run, highly profitable business" that generates strong cash flow.

Brondeau added that FMC "is committed to its strong balance sheet and a sale of Alkali Chemicals will allow us to de-lever to a point that is appropriate for our business profile."

FMC opened higher Monday and changed hands recently at $66.28, up 1.04 percent.