FMC Corporation has announced the sale of its Global Specialty Solutions (GSS) business to Environmental Science US, LLC d/b/a Envu for a purchase price of $350 million. This decision comes after FMC's previous announcement in November 2023 to explore strategic options for GSS, which caters to non-crop markets such as golf courses, professional sports stadiums, and pest control.
The transaction is expected to close by the end of 2024, subject to regulatory approval and customary closing conditions. FMC plans to allocate all proceeds from the sale to debt reduction.
Envu, acquired by international private equity firm Cinven in 2022, sees the acquisition of GSS as an opportunity to support its growth strategy in professional pest management, turf & ornamentals, and other sectors. With over 180 trusted brands in its portfolio, Envu operates in 100 countries and has four global innovation hubs.
In terms of financial advising for the transaction, BofA Securities acted as FMC's financial adviser, while McCarter & English provided legal counsel. On the other hand, Barclays and Baker McKenzie served as financial adviser and legal counsel, respectively, to Envu for the transaction.
The press release also mentioned that Cinven is a leading international private equity firm with a responsible approach towards its portfolio companies, employees, suppliers, local communities, the environment, and society.
The market has reacted to these announcements by moving the company's shares 1.3% to a price of $57.41. For more information, read the company's full 8-K submission here.
