FMC Corporation, a global agricultural sciences company, has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, known as Envu, an environmental science company. Envu will purchase the GSS business for a purchase price of $350 million, subject to 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,” says Pierre Brondeau, FMC Chairman and CEO. “With this divestment, FMC can focus solely on its core business.”
Envu, which was acquired by international private equity firm Cinven in 2022, sees GSS as an opportunity to support its growth strategy while continuing to deliver powerful innovations for customers in professional pest management, turf & 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,” says Gilles Galliou, Envu CEO. “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.”
“We are delighted to bring together two highly respected, complementary businesses with a shared focus on delivering seamless customer service and product innovation in the attractive environmental science market. We see FMC GSS as a compelling addition to Envu strategically and financially and look forward to continuing to support the combined business’ strong growth trajectory," says Marco Strizzi, senior principal at Cinven.
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.
BofA Securities acted as financial adviser and McCarter & English was legal adviser to FMC, while Barclays acted as financial adviser and Baker McKenzie was legal adviser to Envu for the transaction. Further terms and conditions of the agreement were not disclosed.
